Question : Which of the following are not the Characteristics of Statement of Profit and Loss (Profit and Loss Account)?
Option 1: It shows the financial performance of a company, i.e., revenues, expenses and Profit or loss for the period.
Option 2: It is prepared for a past period and thus, is a historical document.
Option 3: It is for a specific accounting period.
Option 4: None of the above
Correct Answer: None of the above
Solution : Answer = None of the above
All of the statements listed are characteristics of the Statement of Profit and Loss. It indeed depicts a company's financial performance, covers a specific accounting period, and presents historical data. Therefore, none of the statements are incorrect, and the answer is: "None of the above."
Hence, the correct option is 4.
