JAMB Accounts Principles of Accounts 2019 Paper

Concept:The profit and loss account, also called the income statement, shows the operating result of a business for a period.Explanation:It is prepared after the trading account to determine the net profit or net loss.Net profit is calculated by deducting all expenses from the gross profit.That is: $$\text{Net Profit} = \text{Gross Profit} - \text{Expenses}$$Therefore, its main purpose is not to compute gross profit or capital, but to ascertain the net profit.Answer:D. Net profit.