Question

Another name given to trading and profit and loss a/c is _________.

• A. income statement
• B. positional statement
• C. revenue statement
• D. none of the above

Answer 1

The correct option is A income statement

Trading and profit and loss account is prepared to determine the profit earned or loss sustained by the business enterprise and during the accounting period. It is basically a summary of revenues and expenses of the business and calculates the net figure termed as profit or loss. As it accounts for the net income of the entity, another name given to trading and profit and loss account is income statement.