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Difference between P&L Account & Balance Sheet

Which of the ...

Question

Which of the following represents the entity`s financial performance over a period of time ?

A

Balance sheet

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B

Cash Flow Statement

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C

Profit & Loss account

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D

None of the above

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Solution

The correct option is C
Profit & Loss account

Profit & Loss account discloses the entity’s financial performance, i.e. profit earned or loss suffered by the business for the accounting period.

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Assertion (A) - The income statement and the balance sheet are financial statements that show the cash flows in and out of the business unit.

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Q. The correct sequence in preparation of periodical financial statement would be :

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Select the correct answer from the option given below.

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A Statement of Affairs is similar to the :

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(b) Trial balance
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