. The trading account is prepared to find out


A: Gross profit or loss

B: Net profit or loss

C: Financial position

D: Position of the partners

 

Best Answer

Explanation:

  • The trading account is a financial statement prepared to find out the gross profit or loss earned by the

manufacturing/merchandise concern during a particular period. 

  • It includes direct expenses and income related to the operation of the business. 
  • It indicates the efficiency of the business operation. 
  • If the debit side is greater than the credit side results in gross loss and if the credit side is greater then the debit side results in gross profit.

Final answer:

Hence, Option A is the correct answer.

 

Talk to Our counsellor