The Financial Performance in a Company Illustrated with the Profit and Loss Account

Abstract

The financial statements are intended to show the results of management's performance, including how it used the resources that were entrusted to it. In order to achieve this, the financial statements must provide information to enable future cash flows to predict, in particular regarding their maturity and probability. An important component of the financial statements is the profit and loss account. The profit and loss account or the results account is part of the financial statements closing the financial year, being a synthetic accounting document that measures the performance of a firm's business over a given period. Starting from the presentation of the US and British model of the profit and loss account and of the accounting rules valid for our country, the paper presents the main results determined on the basis of the profit and loss account data within the SC. Revara S.R.L. as the dynamics of revenue from the sale of goods, income from the production sold, turnover, operating result, current result and net result.