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)
A common-size Statement of Profit and Loss runs from revenue down to profit after tax.
(C) Revenue from Operations
(B) Non-Operating Income
(A) Net Profit (here, the profit before tax)
(D) Profit after tax
Note: “Net Profit” is often used for the profit after tax, which would make (A) and (D) the same line. Since (D) is the profit after tax, (A) can only be the profit before tax, which the statement shows just above it; read so, the order is (C), (B), (A), (D).
NCERT (2026-27 edition):
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