Question

Statement of profit shows financial position of business. (State True or False)

Answer 1

NO..

IT SHOWS ONLY NET PROFIT OF THE BUSINESS..

BALANCE SHEET SHOW FINANCIAL STATEMENT OF THE BUSINESS.

Answer 2

The statement that a profit statement describes the financial position of business is false.

• The financial report shows the results of business activities under the single-entry system.
• Instead, by preparing the statement of affairs, a company's financial position is revealed.
• Is a financial statement summarizing the sales, costs and expenses accrued over a specified period, typically a fiscal quarter or an year. These records provide information on the ability or inability of a company to generate profit through increased revenue, cost reduction, or both.