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why we use the term profit and loss account instead of
profit or loss account
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Answer Posted / chalapathi rao govada
Becasue we are consideing various profit transactins and
loss transactions during a specified period.
Eg: profit on sale of assets
Loss on sale of Assets.
Eventhough our objective of preparing p&L is to determine
what is the profit or loss for the given period.Based on
the above logic we are calling it as profit and loss
account.
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