Negate sentence in the Profit and Loss Statement

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How to Negate sentence in the Profit and Loss Statement

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hey guys in todays video im going to show you how to find mistakes or errors in a companys income statement so be jumping into my computer here im going to show you going through revenue and expenses line by line what are the areas that have the most frequently have accounting errors or misstatements and for example here looking at revenue you have interest income and why would a company show interest income and its operating revenue it makes no sense so were going to go through this line by line and im going to show you all the accounting errors in this income statement this is the topic of this video today so stick around if youre new here welcome welcome my name is bill hannah im the financial controller im a licensed cpa in the great state of new york and i have over 15 years of experience in the field of finance what i started out at pricewaterhousecoopers as an auditor and then i transitioned out to private industry and then i worked my way up from a financial analyst p

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Is negative PL good?

If your PL is showing a negative balance, this should be a big red clanging bell warning. Your bookkeeper, accountant, and banker will never let your checking account be in the red, especially by hundreds or thousands of dollars. Zero money is the least amount you should ever have in your account.

What does a negative mean on a profit and loss statement?

Profit Loss Statement A negative revenue figure may mean that you had to credit a customer or customers for more than you sold in a given period.

What happens if PL is negative?

Profit Loss Statement A negative revenue figure may mean that you had to credit a customer or customers for more than you sold in a given period.

Is a negative a debit or credit?

On a balance sheet, positive values for assets and expenses are debited, and negative balances are credited.

What does a negative expense mean?

This includes your financial statements. A negative number in an expense account -- indicating income rather than expense -- detracts from that image. Such an number must be researched, and if in error, fixed. If not in error, the entry requires explanation.

What are the 3 major line items on the profit and loss statement?

The main categories that can be found on the PL include: Revenue (or Sales) Cost of Goods Sold (or Cost of Sales) Selling, General Administrative (SGA) Expenses.

What should not be included in statement of profit and loss?

It does NOT include selling or administrative expenses (these expenses are listed elsewhere on the P L statement). For service and professional companies, there will be no cost of goods sold. These types of companies receive income from fees, commissions, and royalties and do not have inventories of goods.

What does a negative number mean in accounting?

A negative balance is an indicator that an incorrect accounting transaction may have been entered into an account, and should be investigated. Usually, it either means that the debits and credits were accidentally reversed, or that the wrong account was used as part of a journal entry.

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