The statement of profit or loss is normally completed:
A) before the balance sheet.
B) after the balance sheet.
C) at the same time as the balance sheet.
D) at any time, the order of completion for these two statements is irrelevant.

Question

Quizplus · Accepted Answer

The statement of profit or loss, also known as the income statement or statement of comprehensive income, is typically completed before the balance sheet as it reports the company’s financial performance over a specific period of time, whereas the balance sheet reports the company’s financial position at a specific point in time.

The Statement of Profit or Loss Is Normally Completed