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The Complete Idiot's Guide® To Accounting by Lita Epstein, Shellie L. Moore

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Chapter 3
Getting the Number News
In This Chapter
• Creating good or bad news statements
• Finding income
• Accepting costs
• Recording expenses
In Chapter 2, we concentrated on the first group of accounts in the chart of accounts, which feed the balance sheet—that provides you with a good idea of the company’s net worth. In this chapter, we concentrate on the next group of accounts, which feed the profit and loss (P&L) statement—that helps you determine how much money you are making (good news) or losing (bad news—unless, of course, you want the loss to have a tax write-off) in a given period. You need the balance sheet to get loans. You need the P&L statement to help manage your daily business operations. This chapter lists the information ...

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