The equivalent of income and expenditure account in a trading concern is
-
A.
trading account -
B.
profit and loss account -
C.
appropriation account -
D.
balance sheet
Correct Answer: Option B
Explanation
The income and expenditure account is an account prepared by non-trading concerns to ascertain surplus or deficit of income over expenditures for a particular period. Its equivalent is the profit and loss account .
An income statement or profit and loss account is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period.