Question

Gross Profit/loss is transferred from ______.

Options

• Trading Account

• Profit and loss account

• Balance sheet

• Manufacturing account

Answer 1

Gross Profit/loss is transferred from Trading account.

Explanation:

1. A Trading Account may be defined as an account prepared to ascertain a business concern's gross profit or gross loss for a given time period.
2. Gross profit as a percentage of sales turnover indicates the business efficiency of a firm.
3. Gross profit or gross loss is transferred to the Profit and Loss Account.