ACCOUNTING BENEFIT
Rise school is Best School of Accountancy in Lahore .CA admissions in Lahore now open. The best School of Accountancy in Pakistan offers CA in Lahore and Best CA in Pakistan. I. CONCEPT The accounting profit of a company is determined by the positive difference between the income (sales, service provision, etc.) and the expenses necessary to generate such sales (purchases, salary expenses, general expenses, etc.) during a financial year. However, notwithstanding the doctrine of the Accounting Framework, not all income and expenses for the year will be part of the result, since there may be income and expenses that have to be charged directly to equity. It is also important to remember that the calculation period to obtain the accounting result usually has an annual duration, although it can be estimated for shorter periods. II. THE BENEFIT AS A RELATIVE MAGNITUDE In the words of Professor Kashif: "Accounting profit is a relative magnitude, as it is t...
