What are the profit and loss account items
We usually deal with asset and liability accounts. Today, let's talk about profit and loss accounts. If you don't understand this part, let's get to know it with the editor!
What does profit and loss account mean?
Profit and loss account is a kind of account. This type of account is used for accounting "profit of the current year", including income account and expense account; At the end of the period (month end, quarter end, year end), the cumulative balance of such accounts should be transferred to the "profit of the year" account, and the balance of these accounts should be zero after carrying forward
What are profit and loss accounts?
1. Main business income: It refers to the income generated by accounting the main business of an enterprise, which accounts for the largest proportion of the total income of the enterprise.
2. Main business cost: the sales cost increased due to the increase of main business income, which is directly matched with the main business income. This account comes from production cost
3. Other business income: It refers to the income generated by accounting enterprises due to other businesses. For example, income from selling raw materials, leasing and transferring the right to use intangible assets of industrial enterprises
4. Other business costs: It is used to calculate the sales costs, expenses and taxes incurred by enterprises due to other business income. It is a direct matching account with other business income
5. Non operating income: It refers to the profits generated in the non daily activities of an enterprise that are not directly related to production and operation. Including: gains from disposal of non current assets, gains from gifts and gains from inventory
6. Non operating expenditure: It refers to the accounting of various losses that are not directly related to the production and operation of enterprises arising from non routine activities. Including donation expense, extraordinary loss, penalty expense, loss on disposal of non current assets, etc
7. Investment income: the return of the enterprise's foreign investment in a certain accounting period
8. Sales expense: It refers to the accounting of all expenses incurred by an enterprise for sales or in the process of sales, or the establishment of a separate sales agency or after-sales service network. Including transportation costs, packaging costs, advertising costs, exhibition costs and salaries of sales staff in special sales agencies
9. Administrative expenses: It is used to calculate various expenses incurred by the enterprise's administrative department for organizing production and operation. Including: board fees, company funds, etc
10. Financial expenses: It refers to the borrowing costs incurred by the accounting enterprise with banks or financial institutions to raise funds for production and operation. Including interest expenses and service charges
