Difference between P&L Account & Balance Sheet

Q.

What is the purpose of preparing trading and profit and loss account?

Q.

The ………. is prepared at a particular date usually the end of the financial year, while the ………. is prepared for a particular period.

1. Profit and Loss account & balance sheet

2. Balance sheet & Profit & Loss account

3. None of the above

4. Profit and Loss account & Profit and Loss account

Q.

______ is prepared to ascertain the financial result of a business operation over a given period of time and ______ shows the financial position of a business at a particular date.

1. Profit and loss account & Profit and loss account respectively

2. None of the above

3. Balance sheet & profit & loss account respectively

4. Profit and loss account & balance sheet respectively

Q.

Is it true that profit and loss account shows the financial position of the enterprise?

Q.

Which of the following represents the entity`s financial performance over a period of time ?

1. Balance sheet

2. Cash Flow Statement

3. Profit & Loss account

4. None of the above

Q.

The balance sheet summarizes the financial position of a company for one _________

1. one specific point of time

2. one year

3. one day

4. one month

Q. Profit and Loss Account shows the financial position of the concern.

1. True
2. False

Q. Financial Accounting states the _______ position of a concern.

1. Non-financial
2. None of the above
3. Financial
4. Economic

Q. What are financial statements? What information do they provide?