Net profit is calculated in which of the following accounts?
(A) Profit and loss account
(B) Balance sheet
(C) Trial balance
(D) Trading account
Answer: (A) profit and loss account
Explanation: Net profit is calculated in the profit and loss account. The profit and loss account is a part of the balance sheet, after making all the necessary adjustments of income and expenses. All financial statements are prepared at the end of each financial year.