_______ is the part of income statement, which is prepared to ascertain the profit/ loss for a given accounting period.

Manufacturing A/c

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Profit and Loss A/c

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Balance Sheet

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All of the above

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Solution

The correct option is A Profit and Loss A/c
Final Account is the final process of accounting. Final accounts include the preparation of Trading account, Profit and Loss account and Balance Sheet. The main purpose of this account is to show the profit or loss earned by the firm during the accounting period. It shows the profitability of the business.

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Similar questions

Q. The final accounts of a manufacturing company generally include the following statements.
i) Balance Sheet
ii) Manufacturing Account
iii) Profit and Loss Account
iv) Trading Account
v) Profit and Loss Appropriation Account.
The correct sequence in which the statements are prepared is?

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

Q. "Income and Expenditure Account of a Not-for-profit Organisation is similar to Profit and Loss Account of a business concern". Explain the statement.

Q. Profits & Loss A/c is prepared to ascertain _______________.

Q. Steps of preparing Final Accounts is -
(a) Trading Account
(b) Profit and Loss Account
(c) Balance Sheet

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