The balancing figure of the ______ is either net profit or net loss.

Balance sheet

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Cash Flow Statement

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Profit & Loss account

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None of the above

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Solution

The correct option is C
Profit & Loss account

The balancing figure of the profit and loss account is either net profit or net loss.

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Similar questions

Q. State whether the following statements are True or False:
Credit balance of profit and loss account shows net profit.

Q. State whether the following statement are True or False.

Credit balance of profit and loss account shows net profit of the business.

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.

A Statement of Affairs is similar to the :

(a) Balance sheet
(b) Trial balance
(c) Trading Account
(d) Profit & Loss Account

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

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The balancing figure of the ______ is either net profit or net loss.

The correct option is C Profit & Loss account The balancing figure of the profit and loss account is either net profit or net loss.

The correct option is C
Profit & Loss account

The balancing figure of the profit and loss account is either net profit or net loss.