BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Trading account is the first part of this account, and it is used to determine the gross profit that is earned by the business while the profit and loss account is the second part of the account, which is used to determine the net profit of the business.

Detailed explanation-2: -An income statement assesses the profit or loss of a business over a period of time, whereas a balance sheet shows the financial position of the business at a specific point in time.

Detailed explanation-3: -No, it does not show the financial position of the enterprise. It shows the financial performance i.e., profit or loss of an enterprise for a particular period.

Detailed explanation-4: -A profit and loss statement is a financial report that shows how much your business has spent and earned over a specified time. It also shows whether you’ve made a profit or a loss over that time – hence the name. A profit and loss statement might also be called a P&L or an income statement.