Question

31. Why is a profit and loss statement useful for a business? (1 point)

A It determines what kind of accounting a business should use.

B It does not take the business's assets into account.

C A business cannot track expenses without one.

D It consolidates essential information about the business.

Answer 1

Option( D)

It consolidates essential information about the business.

Step-by-step explanation:

The Profit & Loss account describes different business activities such as expenses and revenues of the business, particularly useful in finding out the risk of not achieving the required one and planned the level of income in the future.

It also gives us information required to find out tax obligations.Hence, profit and as well as loss statement is useful for a business by providing various important information about the business

Answer 2

D It consolidates essential information about the business.

Step-by-step explanation:

The Profit and Loss statement, commonly known as PyL is the statement that consolidates the operation in each period. In general, it is useful to determine: the revenues, the operating profit, The EBITDA (Earnings Before Interests and Taxes plus Amortization and Depreciation), the Profit before taxes and the net profit.