[amp_mcq option1=”Profit & Loss A/C” option2=”Balance Sheet” option3=”Trial Balance” option4=”Cash Flow of Funds Flow” correct=”option1″]
The correct answer is: A. Profit & Loss A/C
A Profit & Loss Account is a financial statement that shows a company’s revenues, expenses, and net income or loss over 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 & Loss Account is prepared monthly in Tally by running the Profit & Loss Statement report. This report shows the company’s revenues, expenses, and net income or loss for the month.
The other options are incorrect because:
- A Balance Sheet is a financial statement that shows a company’s assets, liabilities, and equity at a specific point in time. It is one of the three main financial statements, along with the Profit & Loss Account and the Cash Flow Statement.
- A Trial Balance is a list of all the accounts in a company’s ledger, along with their balances. It is prepared at the end of each accounting period to check that the debits and credits are equal.
- A Cash Flow Statement is a financial statement that shows a company’s cash inflows and outflows over a specific period of time. It is one of the three main financial statements, along with the Profit & Loss Account and the Balance Sheet.