Arrange following in sequence with regard to profit concepts. A. Prof…

The correct answer is Option (3) → D, E, B, C, A

Each profit figure is reached from the one before it by taking off one more kind of cost:

(D) Gross Profit – revenue from operations less cost of revenue from operations; it still has to cover operating and non-operating expenses.

(E) Operating Profit – gross profit less the other operating expenses.

(B) Profit Before Interest and Tax – operating profit with non-operating incomes and expenses (except interest) taken in.

(C) Profit After Interest Before Tax – PBIT less interest; this is net profit before tax.

(A) Profit After Tax – profit before tax less tax; the last figure.