Unit 5

Esme

I'm doing a practice exam for Unit 5 and am stuck on 2 questions.

1- Give two examples of transactions that affect the profit figure, but do not affect the bank account.

2- Give one example of a transaction that affects the bank account, but does not directly affect the profit figure?

visha

What is profit and loss account?

simply put - it is an account where all your income (Revenue) and expenses are shown at the end of the year.

Is there any Receipts that will come into the business, hence put into the bank a/c, but is not classified as your income? (think about assets and liablilities here).

Similarly is there any Payment from your business (out of bak a/c) but is not classified as an expenses? (think about assets and liablilities here).

this will answer your both questions.