Question

The net profit or loss for a particular period of time is reported on the____________ .

• A. Income Statement
• B. Balance Sheet
• C. Trial Balance
• D. Statement of Changes in Owner's Equity

Answer 1

The correct option is A Income Statement

The net profit or loss for a particular period of time is reported on the Income statement or profit and loss account.

A profit and loss account shows a company’s revenue and expenses over a particular period of time, typically either one month or consolidated months over a year. These figures show whether your business has made a profit or a loss over that time period.

Profit and loss accounts show your total income and expenses, and also shows whether your business has earned more income than it has spent on its running costs. If that is the case, then your business has made a profit.