Profit and Loss Accounts

962 Words Nov 10th, 2010 4 Pages
Within this assignment I will be interpreting the contents of the British airways accounts I will also be writing a statement about the business and its progress, and describe what profit and loss accounts are.
PROFIT AND LOSS ACCOUNT
By law business are required to provide annual financial statements, which will appear in their company report, there are two main types of financial statements, one is balance sheet and the other is a profit and loss account.
A profit and loss account is a record which can be updated regularly and generally shows businesses transactions made over a period of time (usually within 12 months), An example profit and loss account of a business. and expenses associated with the business. It will basically
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In 2001 we can clearly see that the company are struggling and at the end of the year make a huge loss, of 126 million, and in 2002 it seems to worse although they make a large turnover after deducting all expenses they have made a bigger loss than the previous year, they lose 142million, however during 2003 British airways pull themselves back up and start making a profit instead of a loss although their turnover is less than the 2 previous
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