The primary objective of the trading account is to show the __________.

overall trading profit or loss for the period concerned

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net trading profit or loss for the period concerned

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profit or loss on the turnover of the goods sold in the period

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difference between income earned and expenditure incurred in the period

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Solution

The correct option is A overall trading profit or loss for the period concerned
The primary objective of the trading account is to show the overall trading profit and loss for the period concerned. Trading account is concerned with the profit earned on sale or purchase of goods and services.

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Similar questions

Q. XYZ club has a bar that maintains a separate trading account for its trading activities. Which of the following is the treatment of profit or loss on bar trading activities ?

Q. Which are the accounts which are not balanced but transferred to Trading A/c or Profit &loss A/c?

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. All expenses incurred in case of Trading and Profit & loss account are ___________ in nature.

Q. Gross profit or gross loss revealed by trading account is transferred to:

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The primary objective of the trading account is to show the __________.

The correct option is A overall trading profit or loss for the period concernedThe primary objective of the trading account is to show the overall trading profit and loss for the period concerned. Trading account is concerned with the profit earned on sale or purchase of goods and services.

The correct option is A overall trading profit or loss for the period concerned
The primary objective of the trading account is to show the overall trading profit and loss for the period concerned. Trading account is concerned with the profit earned on sale or purchase of goods and services.