Question

Income statement includes
Trading account
Profit and loss account
Both (a) and (b)
Balance sheet​

Answer 1

Answer:

Your ans will be:

Profit and loss account.

Explanation:

Elements of the Income Statement

The income statement consists of revenues (money received from the sale of products and services, before expenses are taken out, also known as the “top line”) and expenses, along with the resulting net income or loss over a period of time due to earning activities.

Hope so it will help you.....✌️

Answer 2

ANSWER :

Income statement includes

(a) Trading Account

(b) Profit and Loss Account

(c) Both (a) and (b) ✓

(d) Balance Sheet

• Income statement includes both the Trading Account and the Profit and Loss Account.

MORE TO KNOW :

• ❖ Financial Statement refers to basic statements namely Income Statement and Statement of Financial Position.

• ❖ Income Statement shows the result of business operations during an accounting period.

• ❖ Income statement is also termed as Trading and Profit and Loss Account as it includes both the Trading Account and the Profit and Loss Account.

• ❖ The Trading Account shows the Gross Profit or Gross Loss of the business operations while the Profit and Loss Account shows the Net Profit or Net Loss.

• ❖ Statement of Financial Position shows the financial position of a business on a particular date.

• ❖ Statement of Financial Postion is also termed as Balnace Sheet or Position Statement as it includes the Balance Sheet on a particular date.

• ❖ Statement of Financial Position shows the total assets and total liabilities of an entity on a particular date.