Page 1 of 1

Everything you need to know about the tax regime without tax obligations

Posted: Tue Jan 07, 2025 6:07 am
by rumiexpate3
The answer is that the profit or loss of the year is reflected in the company's net worth. Specifically, it is recorded in an account called "Retained earnings" or "Results for the year." This account is located within the net worth, along with other accounts such as share capital and reserves.

The placement of the profit and loss on the balance sheet is logical. As it is an indicator of the company's profitability, it is important that it is reflected in the net worth, which is the part of the company that belongs to the shareholders or owners. In this way, it shows how the wealth of the company's owners has increased or decreased over time.

It is important to note that the result of the financial year is closed at the end of each accounting period and is transferred to the accumulated profit and loss account.

Understanding the vital connection between the balance sheet and the income statement
The balance sheet and the income statement are two fundamental tools in a company's accounting. Both documents are complementary and are used to assess the financial health of the organization.

The balance sheet shows the financial position of the company at a specific point in time, usually at the end of the fiscal year. This document is divided into three main sections: assets, liabilities, and shareholders' equity. Assets represent the resources owned by the company, such as cash, inventory, and fixed assets. Liabilities are the company's financial obligations, such as debt and accounts payable. Shareholders' equity is the difference between assets and liabilities, and it represents the value of the company to its owners.

On the other hand, the income statement shows the company's financial belarus telegram number performance over a given period of time, usually a fiscal year. This document is divided into several sections, including revenue, expenses, and profit or loss. Revenue is the money the company earns through its business activities, such as sales of products or services. Expenses are the costs the company incurs to generate that revenue, such as salaries, rent, and supplies. Profit or loss represents the difference between revenue and expenses, and shows whether the company has made a profit or suffered a loss during the accounting period.

It is important to understand the connection between the balance sheet and the income statement for the financial year.

So don't wait any longer, get off the couch and start exercising! Your body and your wallet will thank you.

Take advantage of this opportunity to improve your finances and your quality of life! If you have any questions or comments, please do not hesitate to write to us. We will be happy to help you on your way to a healthier financial life.