Question

Which of the following can be drawn tentatively and used as a goal against which actual performance can be measured?

A. Statement of cash flow

B. Profit and loss statement

C. Balance sheet

D. External audit

E. Capital budget

Answer 1

The profit and loss statement can be used as a goal against which actual performance can be measured.

Step-by-step explanation:

The statement that can be drawn tentatively and used as a goal against which actual performance can be measured is the Profit and loss statement.

The Profit and loss statement, also known as the income statement, shows the revenues, expenses, and net income of a business over a specific period of time. It helps to assess the profitability and performance of a company.

For example, if a company sets a target net income of $100,000 for the year, they can compare it with the actual net income reported on the profit and loss statement to evaluate their performance.