Which one of the following statements is most accurate? There is no difference between a Profit & Loss Statement and an Income Statement, the two terms refer to the same financial statement. The Profit & Loss Statementis used to record what actually happened over a period of time, while the IncomeStatement is only used to forecast future earnings. Corporations must file an Income Statement prepared by an accountant while individuals and small businesses are allowed to prepare the shorter, simpler Profit & Loss Statement. The Profit & Loss Statement is based on cash transactions coming in and out of the firm, while the Income Statement is based on accounting numbers and accruals