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: 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.