Q. Which of the following is not true with regard to preparation of Profit & Loss Account? (Solved)

1. Profit & Loss Account is prepared for a certain period and hence it is an interim statement

2. Profit & Loss Account does not disclose the effect of non-financial items

3. Net Profits are ascertained on the basis of current costs

4. Net Profits as disclosed by P&L Account is not absolute

  • a. Profit & Loss Account is prepared for a certain period and hence it is an interim statement
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