Answered

A business produces a profit and loss account for all of the following reasons except?
A. It can help to forecast future profits and helps with planning
B. It is required to earn profits in order to be a successful business
C. It can be compared with the previous year's performance
D. Investors or lenders need to see one before making deals.



Answer :

GinnyAnswer

Final answer:

Profit and loss accounting in business serves various purposes including forecasting future profits, aiding in planning, and evaluating financial health for investors or lenders.


Explanation:

Profit and loss accounting in a business serves multiple purposes, such as forecasting future profits, aiding in planning, and allowing comparison with previous performance. However, earning profits is not the sole purpose; it also helps investors or lenders evaluate the business's financial health before making deals.


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