Profit & Loss Account Course Businesses are created with the intention of producing wealth for their owners & profit is a measure of the wealth that has been created during a particular period. Profit is generally considered to be the most important measure of business performance & the amount of profit generated by a business is reported in a profit & loss account. In this course, we provide an understanding of the nature, form & content of the profit & loss account which is also known as the income statement. We examine the way in which profit is measured, & the way in which basic profit & loss accounts & balance sheets are prepared from a series of business transactions. By the end of this course, you should be able to: explain the nature & purpose of the profit & loss account set out the basic form of the profit & loss account & explain its relationship with the balance sheet explain the major conventions underpinning the profit & loss account explain the major principles involved in the measurement of profit prepare a profit & loss account & a balance sheet from basic transactions set out profit & loss statements in an appropriate form.