Question on: WAEC Accounting - 2012
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
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Correct Option: B
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 .Â
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.
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