Section 1: Introduction to the Profit and Loss Account

1.1 The Measurement of Profit

1.2 Relationship Between Profit and Loss Account and Balance Sheet

1.3 Forms of Revenue and Expense

1.4 Owners' Capital and the Profit and Loss Account

Section 2: Measurement of Revenues and Expenses

2.1 The Measurement of Profit

2.2 The Matching Convention

2.3 The Accruals Convention

2.4 The Measurement of Expenses

2.5 A More Detailed Illustration

2.6 Practical Implications of Accruals Accounting for the Preparation of Final Accounts

Section 3: Form and Content of Profit and Loss Accounts

3.1 The Profit and Loss Account of Trading Businesses


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