Question

account tells whether the business entity has earned a profit or loss.

• A. Asset
• B. Profit
• C. Loss
• D. Profit or Loss

Answer 1

The correct option is D Profit or Loss

The profit and loss statement shows the profit or the loss of a business during a specific period. The profit and loss statement allows you to view the net profit or the net loss of your business during a particular accounting period, after the deduction of all expenditure from income.