Finance Analyst Question:

Business concerns who desire to earn profits by functioning business are ones who use profit and loss account. In the same manner, trusts, non-profit organizations make use of income and expenditure statement. It is the trading organizations that prepare P&L account in order to find out the net profit or loss of the organization’s operation. Non-trading organizations prepare income and expenditure account, to find out if they have made a profit to run their business further or is in a loss.