{"id":59439,"date":"2024-04-16T01:37:11","date_gmt":"2024-04-16T01:37:11","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59439"},"modified":"2024-04-16T01:37:11","modified_gmt":"2024-04-16T01:37:11","slug":"statement-i-the-profit-and-loss-account-shows-the-financial-results-of-the-concernfor-a-period-statement-ii-in-profit-and-loss-account-indirect-expenses-are-charged-against-the-gross-profit","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/statement-i-the-profit-and-loss-account-shows-the-financial-results-of-the-concernfor-a-period-statement-ii-in-profit-and-loss-account-indirect-expenses-are-charged-against-the-gross-profit\/","title":{"rendered":"Statement I The profit and loss account shows the financial results of the concernfor a period. Statement II In profit and loss account, indirect expenses are charged against the gross profit."},"content":{"rendered":"

[amp_mcq option1=”Both statements are correct” option2=”Both statements are incorrect” option3=”Statement I is correct, but statement II is incorrect” option4=”Statement I is incorrect, but statement II is correct” correct=”option3″]<\/p>\n

The correct answer is: Statement I is correct, but statement II is incorrect.<\/p>\n

Statement I is correct because the profit and loss account shows the financial results of the concern for a period. It is a financial statement that summarizes the revenues and expenses of a company for a specific period of time, usually a quarter or a year. The profit and loss account is used to calculate the net income or loss of a company.<\/p>\n

Statement II is incorrect because indirect expenses are not charged against the gross profit. Indirect expenses are expenses that are not directly related to the production of goods or services. They are also known as overhead expenses. Indirect expenses are usually allocated to products or services based on some predetermined basis, such as direct labor hours or machine hours.<\/p>\n

Here is a brief explanation of each option:<\/p>\n