Arrange the following outcomes in the correct order for calculating profit and loss in the common-size statement.
(A) Net Profit
(B) Non-Operating Income
(C) Revenue from Operations
(D) Profit after tax
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: (C), (B), (A), (D)
In a common-size Statement of Profit and Loss, we start with Revenue from Operations (C) and add Non-Operating/Other Income (B) to get total income. After deducting expenses we reach Net Profit (profit before tax) (A), and after charging tax you get Profit after tax (D).