Question

Q.10 :-Net profit is computed in the
O Profit and loss account
C
Balance sheet
Trial balance
O Trading account​

Answer 1

Answer:

Correct option is

C

Profit & loss A/c

Financial statement of the business are prepared normally at the end of the financial year. There are three main statements that are prepared:

1) Trading account shows the gross profit/loss after debiting all the direct expenses and sales.

2) Profit & Loss account shows the net profit/loss after considering the indirect expenses and incomes.

3) Balance Sheet which shows the assets and liabilities of the firm as on the date.

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