Which financial report provides information on sales and expenses in the Ship's Service store?

Which financial report provides information on sales and expenses in the Ship's Service store?

• A. Balance Sheet
• B. Profit and Loss (PandL) Statement
• C. Cash Flow Statement
• D. Sales Forecast Report

Answer: (B)

The Profit and Loss (P&L) Statement is the correct choice because it specifically summarizes a company's revenues, costs, and expenses over a specific period, providing a clear picture of the financial performance of the Ship's Service store. This statement is crucial for understanding how much money the store is making from sales and how much it is spending on operating expenses, allowing for an assessment of profitability. In contrast, a Balance Sheet offers a snapshot of assets, liabilities, and equity at a specific point in time, and doesn't directly report on sales or expenses. The Cash Flow Statement focuses on the inflow and outflow of cash within a business and is important for assessing liquidity, but it does not detail sales revenue and expenses in the way that a P&L statement does. The Sales Forecast Report provides predictions of future sales but does not provide historical data on sales and expenses. Therefore, for determining the financial performance related to sales and expenses in the Ship's Service store, the Profit and Loss Statement is the most relevant document.

The Profit and Loss (P&L) Statement is the correct choice because it specifically summarizes a company's revenues, costs, and expenses over a specific period, providing a clear picture of the financial performance of the Ship's Service store. This statement is crucial for understanding how much money the store is making from sales and how much it is spending on operating expenses, allowing for an assessment of profitability.

In contrast, a Balance Sheet offers a snapshot of assets, liabilities, and equity at a specific point in time, and doesn't directly report on sales or expenses. The Cash Flow Statement focuses on the inflow and outflow of cash within a business and is important for assessing liquidity, but it does not detail sales revenue and expenses in the way that a P&L statement does. The Sales Forecast Report provides predictions of future sales but does not provide historical data on sales and expenses. Therefore, for determining the financial performance related to sales and expenses in the Ship's Service store, the Profit and Loss Statement is the most relevant document.