Question

Profit and loss account is also called ______ statement.

Options

• Cash

• Income

• Both of these

• None of these

Answer 1

Profit and loss account is also called Income statement.

Explanation:

The profit and loss account, often known as the income statement, is an accounting report. It summarizes revenues and expenses and calculates profit/loss for a given accounting period. It also indicates the difference in the equity of the owner between two consecutive periods. It is a necessary statement for the compilation of the balance sheet and is thus attached to it.