Accounting for IGCSE & O level - Final Statements (Section 2 - No. 38)
What is the core purpose of the 'profit and loss' account?
To record all business expenses.
To calculate the amount of capital.
To compute the profit or loss for a specific period.
To track all business assets.
Explanation
The profit and loss account's main purpose is to calculate the profit or loss for an accounting period.