Question

Which statement summarises the revenues and expenses of business?

• A. Statement of profit & loss
• B. Statement of cash flow
• C. Statement of balance sheet
• D. Statement of fund flow

Answer 1

The correct option is A Statement of profit & loss

Statement of Profit and loss shows the revenues and expenses of the business earned or incurred during the accounting year. The statement helps in understanding the financial position of the business. It calculates the profit earned or the loss incurred, enabling the users of financial statements in decision making.