09-11-2006, 01:37 AM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by sam</i>
<br />profits have no place in a profit and loss accountuntil they have been "realised" in the form of cash
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please read carefully i havnt used the words "RECIEVED" or "PAID" but "REALISED" , which means to become aware of something.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
wrong.
Profit has nothing whatsoever got to do with cash or being realised as cash, under the accrual concept of accounting.
Profit is derived from all revenue earned, less all expenditure incurred, for a given period. That's when a profit is realised.
The profit, after all revenue earned and all expenditure incurred, is
accounted for within the balance sheet in retained profits or retained earnings.
<br />profits have no place in a profit and loss accountuntil they have been "realised" in the form of cash
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please read carefully i havnt used the words "RECIEVED" or "PAID" but "REALISED" , which means to become aware of something.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
wrong.
Profit has nothing whatsoever got to do with cash or being realised as cash, under the accrual concept of accounting.
Profit is derived from all revenue earned, less all expenditure incurred, for a given period. That's when a profit is realised.
The profit, after all revenue earned and all expenditure incurred, is
accounted for within the balance sheet in retained profits or retained earnings.
