All direct indirect expenses related to business are charged to the
All direct indirect expenses related to business are charged to the
The correct option is C Trading Account Profit and Loss account
A business needs to prepare a trading and profit and loss account first before moving on to the balance sheet. Trading and profit and loss accounts are useful in identifying the gross profit and net profits that a business earns.
The motive of preparing trading and profit and loss account is to determine the revenue earned or the losses incurred during the accounting period.
The trading and profit and loss account are two different accounts that are formed within the general ledger. The two parts of the account are:
1. Trading Account
2. Profit and Loss Account
Trading account is the first part of this account, and it is used to determine the gross profit that is earned by the business while the profit and loss account is the second part of the account, which is used to determine the net profit of the business.
Trading Account Profit and Loss account
A business needs to prepare a trading and profit and loss account first before moving on to the balance sheet. Trading and profit and loss accounts are useful in identifying the gross profit and net profits that a business earns.
The motive of preparing trading and profit and loss account is to determine the revenue earned or the losses incurred during the accounting period.
The trading and profit and loss account are two different accounts that are formed within the general ledger. The two parts of the account are:
1. Trading Account
2. Profit and Loss Account
Trading account is the first part of this account, and it is used to determine the gross profit that is earned by the business while the profit and loss account is the second part of the account, which is used to determine the net profit of the business.
