Question

Profit and loss account is a

Answer 1

Answer:

The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year. ... These records provide information about a company's ability or inability to generate profit by increasingrevenue, reducing costs, or both.

Answer 2

ANSWER :

Profit and Loss Account is a part of Income Statement as well as Final Accounts.

• A Profit and Loss Account is a account through which the net result, i.e., net profit or net loss of a business can be ascertained.

• A Profit and Loss Account is prepared after the Trading Account.

• According to R.N. Carter, "A Profit & Loss Account is an account into which all gains and losses are collected, in order to ascertain the excess of gains over losses or vice-versa".

• A Profit and Loss Account starts with the amount of gross profit or gross loss brought down from the Trading Account.

• The balance amount of a Profit and Loss Account, i.e., net profit or net loss is transferred to the Capital Account.

• The final accounts include Trading Account, Profit and Loss Account and Balance Sheet.

• Both the Trading Account and the Profit and Loss Account are the parts of Income Statement.