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Saturday 4 February 2012

what is cash profit and how to define it ?

U know about accural basis and monetary basis. accural basis means every transaction which are done 1 financial year are entered and cash basis means every sales which are form in cash are enter. book profit means profit which are earned in 1 financial yera (accural basis) and cash profit means profit earned on the basis of cash basis. book profit are shown in the profit and loss a\c for the purpose of income tax and cash pofit are for bussiness men with help of this they known about what the standard of cash inflow and outflow.

AND 
IT is profit after tax plus depreciation

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