The Profit & Loss statement can be displayed in ________ format(s). A. Horizontal B. Vertical C. A or B D. None of the above

The correct answer is: C. A or B.

A profit and loss statement, also known as an income statement, is a financial statement that reports a company’s revenues, expenses, and net income (or loss) for a specific period of time. It is one of the three main financial statements, along with the balance sheet and the cash flow statement.

A profit and loss statement can be displayed in either horizontal or vertical format. In the horizontal format, the revenues and expenses are listed side-by-side, with the revenues listed first and the expenses listed second. The net income (or loss) is then calculated by subtracting the expenses from the revenues.

In the vertical format, the revenues and expenses are listed one below the other, with the revenues listed at the top and the expenses listed at

Both the horizontal and vertical formats are acceptable ways of displaying a profit and loss statement. The choice of format is usually up to the company.

Here is an example of a horizontal profit and loss statement:

| Revenue | $100,000 |
| — | — |
| Expenses | $50,000 |
| Net Income | $50,000 |

Here is an example of a vertical profit and loss statement:

Revenues: $100,000

Expenses: $50,000

Net Income: $50,000