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NECO Book Keeping 2015 Objective — Question 4

Question 4 of 40 from the National Examinations Council (NECO) Book Keeping 2015 Objective paper, with the correct answer and a full explanation.

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Profit and loss account is prepared to ascertain

  • A. cost of goods sold
  • B. gross profit or gross loss
  • C. cost of goods available for sale
  • D. net profit or net lossCorrect

Explanation

The primary purpose of a profit and loss account is to determine the net profit or net loss of a business over a specific period.

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