Hour 4

The Profit & Loss Accounts

Chapter Summary

In this hour you will learn about…

  • Income accounts
  • Cost of Sales accounts
  • Selling Expenses
  • General Expenses
  • Other Income accounts
  • Net Profit or Loss

The accounts a bookkeeper works with the most are the accounts contained within the second section of the Financial Statements. Along with the Cash in Checking account, these are the accounts where the majority of the day-to-day business transactions are recorded.

 

All the income generated by the business activity of an individual or company and all the costs and expenses incurred and paid out are posted to these accounts. The particular needs of the business entity are reflected in the type of accounts that are set up for the company or individual.

 

In Hour ...

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