The following is a statement of revenues and expenses for a specific period of time?

The correct answer is Option C.

The Profit and loss statement is also referred to as the statement of revenues and expenses. It is because the Profit and Loss statement reports all types of revenue that have been earned and all types of expenses that have been incurred during a particular period of time.

Option A Trading Account reports only the operating revenues and operating expenses.

Option B Trial Balance shows the balances of all the ledgers of a business and is prepared to check the arithmetical accuracy of the books of accounts.

Option D Balance sheet reports the balances of assets and liabilities of a business as at a particular date.

People often confuse the trading and the profit and loss statement to be the same. But they are different.

Trading Account is prepared with aim of arriving at operating profit or gross profit whereas the profit and loss statement is prepared to arrive at the net profit of a business and reports every revenue and expense whether operating or non operating in nature.

Operating revenue and operating expense are earned or incurred respectively are related to the chief business activities of a business.

Features of profit and loss statement:

1. It is prepared to measure the net profit of a business hence its profitability.
2. It is usually prepared for a period of one year but many companies do prepare quarterly statements to better judge their performance.
3. It helps the management in decision making and the other stakeholders like shareholders, creditors to make informed decisions.