The Statement Relating to the Profit and Loss Summary Account

question 38

Multiple Choice

The statement relating to the Profit and Loss Summary Account that is incorrect is:

• A)The balance in each income and expense account is transferred to the Profit and Loss Summary Account
• B)The balance in the Profit and Loss Summary Account is transferred to the owner's Capital account
• C)The Profit and Loss Summary Account is established to summarise the balances in the income and expense accounts
• D)The Profit and loss Summary Account is a permanent account

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Definitions:

Community Ties

The connections, relationships, or bonds formed among members within a community, contributing to social cohesion and mutual support.

Socially Engaged

Involvement and participation in community activities or social groups, demonstrating a commitment to social causes or interactions.

Proportion of People

The fraction or percentage of a population that exhibits a particular trait or falls within a specific category.

Psychological Health

Refers to the emotional, mental, and social well-being of an individual, impacting how they think, feel, and act in daily life.