Identify the primary financial statement that summarizes the Chart of Accounts.
A)Profit and Loss.
B)Summary reports such as A/R Aging.
C)Adjusting entry report.
D)Cash Flow forecast.
E)None.

Question

Quizplus · Accepted Answer

The profit and loss statement (also known as income statement) summarizes all revenue, cost of goods sold, and expenses over a specific period of time. This statement uses the Chart of Accounts to categorize each transaction and presents the net income or loss for the period. Therefore, it is the primary financial statement that summarizes the Chart of Accounts.

Identify the Primary Financial Statement That Summarizes the Chart of Accounts