The gross loss on manufacturing is always transferred to the?
Question 1 Report
The gross loss on manufacturing is always transferred to the?
Answer Details
The gross loss on manufacturing is always transferred to the debit side of the profit and loss account. The profit and loss account, also known as the income statement, is a financial statement that shows a company's revenues, expenses, gains, and losses over a specific period of time. The gross loss on manufacturing represents the difference between the cost of goods sold and the revenue generated from the sale of those goods. Since the cost of goods sold is an expense, it is recorded on the debit side of the profit and loss account. The credit side of the profit and loss account shows revenues and gains earned during the same period. Therefore, the correct answer is the debit side of the profit and loss account.
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