Question

Which of the following is false regarding the Statement of Profit and Loss?

• A. The income statement is sometimes called the statement of operations
• B. The income statement reports revenues, expenses, and liabilities
• C. The income statement reports only revenue at the point of sale
• D. It shows financial position of a business at a particular period of time

Answer 1

The correct option is A

The income statement is sometimes called the statement of operations

The Statement of Profit and Loss doesnot shows net profit of the business is a false statement.

The correct statement is :
The Statement of Profit and Loss shows net profit of the business.