Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Analysis of Financial Statements

Question:

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:

Options:

(A), (B), (C), (D)

(C), (B), (A), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer:

(C), (B), (A), (D)

Explanation:

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).