Which of the following is not true with regard to preparation of Profit & Loss Account?
AProfit & Loss Account does not disclose the effect of non-financial items
BNet Profits are ascertained on the basis of current costs
CNet Profits as disclosed by P&L Account is not absolute
DProfit & Loss Account is prepared for a certain period and hence it is an interim statement
Correct answer
D. Profit & Loss Account is prepared for a certain period and hence it is an interim statement
Explanation
Profit & Loss Account is prepared for a certain period and hence it is an interim statement is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.