IGNOU Assignments Solutions | Ignou Question Paper & Updates

EVERYTHING - IS FREE FOR EVERY STUDENT!!!

logo-ignou-assignments-solutions
background-image-ignou-assignments-solutions

EVERYTHING - IS FREE FOR EVERY STUDENT!!!

“Logistics Management impacts not only upon the profit and loss account of business but also upon the balance sheet?” Comment on the statement.

I

MS 55 Assignment Solution | Logistics And Supply Chain Management | Logistics Management Impacts

Most small businessmen do not prepare, read, understand or analyze their profit & loss accounts. They think this document is required mainly by big companies and is not necessary for small businesses. As a business grows year-on-year, the issue for most businessmen is, how can one determine their income-tax obligations? How can one avail of loans from bankers? And finally, the most important concern is how to forecast their revenue and expenses while setting yearly targets?

The profit & loss account provides information about an enterprise’s income and expenses which result in net profit or a net loss.  It helps a businessman to evaluate the performance of an enterprise and provides a basis for forecasting future performance. It also provides valuable information required by a banker while sanctioning a loan.

The Profit & Loss account describes different business activities such as revenues and expenses, particularly useful in assessing the risk of not achieving a certain level of income in the future. It also provides information required to determine tax obligations.

“A profit & loss account is not only the statement of income and expense, but it also enables you to increase your earnings by reducing unnecessary expenses and increasing incomes,” states Garg Sharma Tandon & Associates, partner Sanjeev Tandon, a practicing chartered accountant since 1995.

Setting and achieving targets is the bedrock for the growth of SMEs and setting a target requires the projection of revenues and expenses. An established SME can make projections for its future revenue based on its past sales and expected income using its Profit & Loss account.  As a small business starts and grows, it may find that its expenses increase at a higher rate. The SMEs may make accurate expense projections to avoid unnecessary expenses.

Analyzing a profit and loss account :

The profit & loss account of an enterprise can be analyzed by understanding its basic components.

Gross profit: This is the profit from the sale of goods that will be utilized to pay the operating expenses of the enterprises.

Higher gross profits mean that the enterprise will have more money to pay operating expenses like salaries, rent, and administrative expenses.

Indirect expenses: All expenses other than direct expenses are assumed as indirect expenses. For example, rent and taxes, salaries and wages, interest, depreciation, agent commission, advertisement, etc.  These expenses describe the selling and administration cost of a business.

Net profit/loss: A profit & loss account has two sides, that is, the income part (credit side) or the expenditure part (debit side). The difference in the two sides of this account will represent either net profit or a net loss. A higher net profit indicates that the enterprise is more effective in converting its revenues into actual profit.

Gross turnover/sales: The gross turnover describes the total sales or gross receipts made during the year. Basically, it provides information about the size and value of the business. A comparison can be made between the previous year’s turnover and the current year’s turnover to analyze the growth of the business.

Wrapped Up

For more Updates join our Telegram Group and also for your inquiry you may comment here or mail us –info@ignouassignmentssolutions.in
Telegram Group – Click Here


Leave a comment
Your email address will not be published. Required fields are marked *

June 2023
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930  

Recent Posts

Follow Us!!!

Advertisements

Advertisements - Contact Us for your advertisement.




Sign Up to Our Newsletter!!!

Related More Posts
I
Ignou Assignments
Bachelor of Art General & Honours (BAG) - DATA ANALYSIS Solved Assignment Answer | BECS 184 | 2021-2022
May 26, 2022
Save
Bachelor of Art General & Honours (BAG) - DATA ANALYSIS Solved Assignment Answer | BECS 184 | 2021-2022
I
Ignou Assignments
IGNOU BCOC 133 Previous Year Question Paper & Important Question | I.A.S.
April 15, 2022
Save
IGNOU BCOC 133 Previous Year Question Paper & Important Question | I.A.S.
P
Prashuk Jain
IGNOU ECO 02 Previous Year Question Paper & Important Question | Commerce Ignou Question Paper
October 8, 2022
Save
IGNOU ECO 02 Previous Year Question Paper & Important Question | Commerce Ignou Question Paper
I
Ignou Assignments
Master's Degree Programme (MBA) - Labour Laws Solved Assignment Answer | MS 28 | 2021-2022
April 20, 2022
Save
Master's Degree Programme (MBA) - Labour Laws Solved Assignment Answer | MS 28 | 2021-2022
I
Ignou Assignments
Bachelor’s Degree Programme (BSCG) - ANIMAL DIVERSITY Solved Assignment Answer | BZYCT 131 | 2021-2022
April 27, 2021
Save
Bachelor’s Degree Programme (BSCG) - ANIMAL DIVERSITY Solved Assignment Answer | BZYCT 131 | 2021-2022
I
Ignou Assignments
Bachelor of Science Honours in Biochemistry (BBCH) - PROTEINS Solved Assignment Answer | BBCCT-105 | 2021-2022
May 28, 2022
Save
Bachelor of Science Honours in Biochemistry (BBCH) - PROTEINS Solved Assignment Answer | BBCCT-105 | 2021-2022
I
Ignou Assignments
Bachelor’s Degree Programme (BSCG) - INSECT VECTORS AND VECTOR BORNE DISEASES Solved Assignment Answer | BZYET 143 | 2021-2022
May 20, 2021
Save
Bachelor’s Degree Programme (BSCG) - INSECT VECTORS AND VECTOR BORNE DISEASES Solved Assignment Answer | BZYET 143 | 2021-2022
I
Ignou Assignments
“The primary function of maintenance management is to ensure the availability of the plant and equipment.” However intrinsic to this requirement is the necessity to provide maximum reliability and safety. Explain the maintenance techniques for safety and environmental improvements.
April 21, 2022
Save
“The primary function of maintenance management is to ensure the availability of the plant and equipment.” However intrinsic to this requirement is the necessity to provide maximum reliability and safety. Explain the maintenance techniques for safety and environmental improvements.
I
Ignou Assignments
Bachelor’s Degree Programme (BSCG) - ELEMENTS OF MODERN PHYSICS Solved Assignment Answer | BPHET 141 | 2021-2022
April 13, 2022
Save
Bachelor’s Degree Programme (BSCG) - ELEMENTS OF MODERN PHYSICS Solved Assignment Answer | BPHET 141 | 2021-2022
P
Prashuk Jain
IGNOU BHIC 102 Previous Year Question Paper & Important Question | Arts (Honours) Ignou Question Paper
October 17, 2022
Save
IGNOU BHIC 102 Previous Year Question Paper & Important Question | Arts (Honours) Ignou Question Paper