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Essay / Research Paper Abstract
This 5 page paper looks at the different types of bottom line accounting that can be used. The paper looks at the single bottom line, dual bottom line, triple bottom line and quadruple bottom line. Each concept is explained fully and examples are given. The bibliography cites 5 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEbotline.rtf
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Unformatted sample text from the term paper:
creates, either as a figure or as a percentage of the turnover. Other percentage returns may also be used such as return on assets or return on equity. These are
all figures that are used, but where a company wants to improve the perception the most favourable manner of presenting results may be used. However, the term bottom line is
used to indicate a definitive and pragmatic measure. There are different types of bottom line used in the business world as indicated by the use of the bottom line, the
dual bottom line, the triple bottom line and the quadruple bottom line. The most commonly used measure is the single bottom line.
This is also referred as the net profit. The basic calculation of the net profit is the total revenue after all costs have been deducted, including interest taxes and
depreciation. Whilst the figure is interesting the understanding of a companys position needs to be considered in a greater context, such as the way in which this is moving against
the companys own performance and how it compares to the industry average this is why the bottom line is often used to calculate a net profit ratio.
If we look at a company such as Johnson and Johnson we need to look at the statement of earnings or the profit and loss
account, as this will show the income and the expenses and the figure remain after all these costs have been deducted. This is the level of funds that may either
remain in the business as equity or be distributed to the shareholders. If we look at the bottom line at Johnson and
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