Question

Alan, an accountant in a law firm, is summarizing his company’s expenses and revenue in the form of an income statement. However, he has been told that the statement is being prepared for the business’s internal audience alone, that is, the firm’s management authorities. Which title should Alan give the income statement?
A.

statement of earnings

B.

statement of profits

C.

profit and loss account

D.

statement of incom

Answer 1

Answer:

Statement of Earnings

Explanation:

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Answer 2

Answer:

profit and loss account

Explanation:

A profit and loss account  is a financial statement that summarizes the revenues, costs, and expenses incurred by a firm over a given period of time. It is an internal company document that  provide information about how a company was able to generate profit by increasing revenue, reducing costs, or both.

Hence, the title that Alan should give to his document is "Profit and Loss Account"