costing profit and loss account
profit and loss account
trading account
deferred to next year
Answer is Right!
Answer is Wrong!
The correct answer is: A. costing profit and loss account
A costing profit and loss account is a type of financial statement that shows the costs incurred in producing goods or services, as well as the revenue generated from those goods or services. The loss incurred on an incomplete contract is transferred to the costing profit and loss account because it is a cost that has been incurred in the production of goods or services, even though the goods or services have not yet been sold.
The other options are incorrect because:
- A profit and loss account is a financial statement that shows the revenue generated and expenses incurred by a business over a period of time. It does not include costs that have been incurred in the production of goods or services that have not yet been sold.
- A trading account is a financial statement that shows the revenue generated and expenses incurred by a business from trading activities over a period of time. It does not include costs that have been incurred in the production of goods or services that have not yet been sold.
- Deferred to next year is not a type of financial statement.