Which of the following contains a summary of the profitability of a firm over the reporting period?

A) profit and loss statement
B) balance sheet
C) statement of cash flow
D) none of these choices

Question

Which of the following contains a summary of the profitability of a firm over the reporting period?

A) profit and loss statement
B) balance sheet
C) statement of cash flow
D) none of these choices

Quizplus · Accepted Answer

The profit and loss statement contains a summary of the profitability of the firm over the past reporting period.This statement lists major items of revenue and matches items of expenditure incurred in earning that revenue.The net result is the periodic earnings figure,which is formally known in Australia as operating profit after tax.The profit and loss statement attempts to provide a summary of the flow of revenues and expenses.

Which of the Following Contains a Summary of the Profitability