Question

The ___________ measure net profit/loss by matching revenues and expenses according to the accounting principles.

• A. Trading A/c
• B. Manufacturing Account
• C. Profit & Loss A/c
• D. None of the above

Answer 1

Answer: (C)

Profit & Loss A/c

The P&L statement reveals the company's realized profits or losses for the specified period of time by comparing total revenues to the company's total costs and expenses. Over time, it can show a company's ability to increase its profit, either by reducing costs and expenses, or by increasing sales.