What does the profit and loss account end with?

The profit and loss account, also known as the income statement, is a financial report that summarizes the revenues, costs, and expenses incurred during a specific period. It ultimately ends with the earnings figure, which represents the profit or loss generated by the business during that period. This figure, often referred to as "the bottom line," shows whether the company has made a profit (earnings greater than expenses) or a loss (expenses greater than earnings).

This earnings figure is crucial for stakeholders, including management, investors, and creditors, as it indicates the financial performance of the organization. It consolidates all revenues and expenses to provide a clear snapshot of profitability, facilitating better decision-making and planning. The other options—total sales figures, expenses for the period, and asset valuations—are important components of financial analysis but do not represent the final outcome of the profit and loss account itself.