Which of the following statements is not true about profit and loss account of a farm?

A. it is prepared at the end of business period usually a year
B. all expenses and purchases are listed on the right-hand side
C. all expenses and purchases are listed on the left-hand side
D. all receipts and sales are listed on the right-hand side

Correct Answer:

Option B – all expenses and purchases are listed on the right-hand side