Use the following information to answer this questions. Rent prepaid - 1/01/2014 - N600 Rent paid - 31/12/2014 - N3,000 Rent prepaid - 31/12/2014 - N400. Rent for 2014 chargeable to the profit and loss account is
A. N4,000 B. N3,000 C. N3,200 D. N2,800
Correct Answer: B
Explanation
The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs and expenses incurred during a specified period, usually a fiscal quarter or year. 3000 is the only expenses incured within the year. other payments were made in advance.
