Multiple choice

The profit & loss account is also known as “Income Statement”, “Statement of Earnings”, or “Statement of Operations”.

  1. True

  2. False
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A Correct answer
Explanation

Explanation: These are different names, Income and expenditure is used in non-profit organizations ( or non-trading organisations). The net income or profit is shown in this account. Hence the name is Income statement. The account reflects the company's operations and hence the phrase “statement of operations”

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