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Question

Profit and loss account discloses the profit/loss for a ___________period.

A
over time
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B
specified
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C
not specified
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D
none of the above
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Solution

The correct option is A: specified
Profit and loss account discloses the profit/loss for a specified period. The period can be for a year or for a quarter. The Statement of Profit and loss shows the revenues and expenses of the business earned or incurred during the accounting year. The statement helps in understanding the financial position of the business.


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