Which of the following is correct chronological order of ascertainment of the following profits from the trading & profit and loss account?

(A) Operating Profit

(B) Gross Profit

(C) Net Profit

Choose the correct answer from the options given below.

(B), (A), (C)

The correct answer is option 1- (B), (A), (C).

The correct chronological order of ascertainment of profits from the trading and profit and loss account is as follows:

(B) Gross Profit- Gross Profit is the profit earned after deducting the cost of goods sold (COGS) from net sales revenue.

(A) Operating Profit- Operating Profit is calculated after deducting operating expenses (such as wages, rent, utilities, etc.) from gross profit.

(C) Net Profit- Net Profit is the final profit figure after deducting all expenses, including non-operating expenses (such as interest and taxes), from operating profit.