What is a classified profit statement?

Classified and profit statement is a financial document that shows the income obtained by the company for a certain period of time and separates the individual aspects of business in the document. As a result, it is easy for management, shareholders and potential investors to easily spend information. It also allows these statistics to compare with business competitors or the company's own performance and also facilitates the calculation of financial conditions. Generally, the classified profit and profit statement is distributed from the income from the sale and services on the positive side and the costs of the goods sold, operating expenditures and other expenditures on the negative side.

If the company is owned by the public and is responsible for its shareholders, it must prepare the financial statements. These statements are detailed financial records of the company for a specified period of time. The two main types of these statements are the balance sheets that show the assets and liabi companies of income related to the income that the company brings through its business. KLAsified profits and losses separated each element of the statement on individual parts.

The statement of classified profit and news profit generally begins with income obtained by the company through sales or services. This amount is the total amount from which all report expenses will be deducted. The main expenditure is the cost of the goods sold, a number that can be achieved by checking the sums of inventories and the assembly of all the money used to buy inventory.

In addition to the costs of the goods sold, the classified profit statement should also include the amounts spent on operating expenses. These expenditures combine the sales costs collected directly during the sale of the company's products and administrative costs associated with the general daily operations of the Business. The last part of the statement should be other different expenditures such as interest expenses and dividends.

is essential in the preparation of a classifieda profit and loss statement to give all these disparate elements to the statement of their own space so that they can be easily studied. In this way, frame statements in this way can see how they accumulate in relevant areas of business against competitors and its own past performance. In addition to facilitating the statistical information in this way the formulation of financial conditions that combine two aspects of the company company and create a ratio useful for evaluation of business.