Which financial statement will be prepared to ascertain the results of the business
A. Trial Balance
B. Profit and Loss account
C. Balance sheet
D. Cash flow statement
Answer:B
Which financial statement will be prepared to ascertain the results of the business
A. Trial Balance B. Profit and Loss account C. Balance sheet D. Cash flow statement
Explanation: Profit or loss is generally arrived after deducting all operating expenses not appearing in the trading account from the operating income if it is the case of surplus then it is called Net Profit. Whereas if it is the case of loss then it is called “Net Loss”.