The difference between current profit and loss and current expenses in accounting

The two are different. Profit or loss for the period.

It is the financial results achieved by the production and operation activities of the enterprise in a certain period, and the current expenses refer to the current expenses of the enterprise, including management expenses, sales expenses and financial expenses.

or include production costs and manufacturing expenses.

1. The profit or loss for the current period refers to the financial results obtained by the enterprise in a certain period of time for production and business activities, which is manifested as profit or loss. The difference between income and expenses is usually regarded as the current profit or loss, that is, the operating income of the enterprise.

Investment income and non-operating income.

and so on included in the current profit and loss of the addition, and the operating costs.

Period expenses and non-operating expenses.

and so on deducted from the current profit and loss, and its balance is the current profit and loss. Through the accounting of current profits and losses, it can not only reflect the quality of the production and operation activities and management work of the enterprise, but also evaluate the profitability of the enterprise, which is an important basis for the majority of investors to make correct judgments and decisions.

The current profit and loss refers to the income and expenses directly related to the current period and the final profit, and in layman's terms, it is the net profit of the current period.

Or a loss. At the end of the month, the profit and loss accounts in the chart of accounts are carried forward to the profit account of the current year.

2. In a narrow sense, current expenses are various period expenses incurred in the current month (period), including management expenses and sales expenses (operating expenses.

financial expenses, etc.

Broadly speaking, in addition to including period expenses, it also includes production costs and manufacturing expenses.

Period expenses are expenses that are not directly attributable to the cost of a particular product. It occurs over time and is directly related to the management of the current product and the sales of the product, but has no direct relationship with the output of the product and the manufacturing process of the product, that is, it is easy to determine the period of its occurrence, and it is difficult to determine the product to which it should belong, so it cannot be included in the product manufacturing cost, and is deducted from the profit and loss in the current period. Period expenses include operating expenses, administrative expenses and financial expenses directly deducted from the current product sales revenue of the enterprise.

Production costs refer to the production expenses incurred by the production unit for the production of products or the provision of services, including various direct expenditures and manufacturing expenses. Direct expenditure includes direct materials (raw materials, auxiliary materials, spare parts, fuel and power, etc.), direct wages (wages and subsidies of production personnel), and other direct expenses (such as welfare expenses); Manufacturing expenses refer to the expenses incurred by the branches and workshops in the enterprise for organizing and managing production, including the salaries, depreciation costs, maintenance costs, repair costs and other manufacturing expenses (office expenses, travel expenses, labor insurance premiums, etc.) of the branch and workshop management personnel.

Manufacturing expenses are the indirect costs incurred by enterprises for the production of products and the provision of labor services, and the manufacturing expenses are reasonably allocated according to the nature of the manufacturing expenses.

First of all, the current profit and loss refers to the income and expenses directly related to the current period and the final profit, which is the net profit or loss of the current period. You can refer to the profit and loss accounts in the chart of accounts, and at the end of the month, the current profit and loss should be carried forward to the current year's profit account.

Expenses, on the other hand, are incurred in the daily activities of the enterprise that will lead to a reduction in the owner's equity, rather than the outflow of economic benefits from occasional transactions or events.

Obviously, the profit and loss for the current period also includes gains.

Expenses can be divided into operating expenses and period expenses according to their relationship with income. Operating expenses include the cost of principal business and other operating costs. Period expenses include administrative expenses, selling expenses, and financial expenses.

Expenses can be divided into production expenses and period expenses according to their economic use. Production costs can be further divided into direct costs and indirect costs. Direct costs include direct material costs and direct labor costs, and indirect costs include manufacturing costs.

Current expenses refer to the expenses incurred in the current period.

Profit or loss for the current period refers to the profit or loss for the current period.

The profit and loss for the current period refers to the loss or profit of the current period, and the expenses for the current period are the three major period expenses (financial expenses, management expenses, and sales expenses).

The profit or loss for the current period refers to the loss or surplus of the current month, which is generally expressed as the profit of the current year. Inclusion in profit or loss for the current period refers to the transfer of all income, costs and expenses incurred in the current month to the debit or credit of the "current year's profit" at the end of the accounting period, that is, at the end of the month. The debit variance for the month of "Profit this year" is the profit or loss for the current period, if the debit balance is a loss, and the credit balance is a profit.

What is the difference between the two concepts of current profit and current profit or loss? This is one of the common problems encountered by financial personnel in bookkeeping. Today, Deep Space Network is here to talk to you about the difference between current profit and current profit and loss?

What should be included in profit or loss for the current period?

What is the difference between current profit and current profit or loss?

1. The current profit generally refers to the profit of the accounting period, that is, the total profit. As the accounting period is different, the current profit is also different. Assuming that the month is used as the accounting period, the current profit = the profit of the current month.

Assuming that the accounting period is yearly, the current profit = the current year's profit.

The profit and loss for the current period refers to the income and expenses related to the current period and the final profit. It can be expressed by the equation of current profit and loss = current net profit and loss. At the end of the month, the profit and loss account in the Chart of Accounts needs to be carried forward to the current year's profit account.

2. The profit and loss for the current period is expressed in the form of profit loss. That is, the corresponding financial results achieved by the enterprise due to production and business activities in a certain period of time. The profit or loss for the current period is usually equal to the difference between income and expenses, that is, the addition of the profit and loss for the current period needs to be included in the operating income, investment income and non-operating income of the enterprise, among which the period expenses and non-operating expenses are deducted from the current profit and loss, and the final balance is the profit and loss for the current period.

3. Profit and loss refers to profit and loss accounts. Neither the gains nor the losses are recurring, so they cannot be placed on profits.

What should be included in profit or loss for the current period?

Answer: Main business income, management expenses, financial expenses, sales expenses, non-operating income, main business costs, other business income, other business costs, asset impairment losses, non-operating expenses, income tax expenses and fair value change gains and losses investment income should be included in the current profit or loss.

Note: Non-operating income = profit is directly included in the current profit.

Non-operating expenses = losses are directly included in the profit for the current period.

The current profit and loss refers to the income and expenditure directly related to the current period and the final profit, and it is also the current amount of the profit and loss account.

"Loss" refers to expenses and losses, "Profit" refers to income and profits, and "Profit and Loss" can be understood as the net profit after tax of an enterprise in a certain period.

The profit and loss for the current period includes main business income, main business costs, other business income, other business costs, taxes and additional expenses, sales expenses, administrative expenses, financial expenses, investment income, asset impairment losses, credit impairment losses, gains and losses on disposal of asset files, gains and losses on fair value changes, other income, non-operating income, non-operating expenses and income tax expenses.