Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Single-step Income Statement

Financial Accounting

4. Merchandising Operations

Single-step Income Statement

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Multiple Choice

Which of the following is also known as a profit and loss statement?

Balance Sheet

Income Statement

Statement of Cash Flows

Statement of Retained Earnings

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Verified step by step guidance

Understand the purpose of the question: The problem is asking which financial statement is referred to as the profit and loss statement. This requires knowledge of the different types of financial statements and their functions.

Recall the definition of an Income Statement: The Income Statement, also known as the profit and loss statement, summarizes a company's revenues, expenses, and profits or losses over a specific period of time. It is used to assess the financial performance of a business.

Compare the options provided: Analyze each option to determine its purpose. For example, the Balance Sheet shows the financial position of a company at a specific point in time, the Statement of Cash Flows tracks cash inflows and outflows, and the Statement of Retained Earnings explains changes in retained earnings.

Identify the correct answer: Based on the definitions, the Income Statement aligns with the description of a profit and loss statement because it reports the company's profitability over a period.

Conclude the reasoning: The correct answer is 'Income Statement' because it is synonymous with the profit and loss statement, while the other options serve different financial reporting purposes.