What is the correct order of preparing statement of profit and loss of a company?
A) Revenue from operations
B) Expenses
C) Profit before tax
D) Total revenue
E) Tax
F) Other income
G) Profit after tax
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- AFDBCEG.
Form and content of Statement of Profit and Loss for the year ended-
I Revenue from operations
II Other income
III Total Revenue (I+II)
IV Expenses:
- Cost of materials consumed
- Purchases of stock-in-trade
- Changes in inventories of finished goods,Work-in-progress and stock-in-trade
- Employee benefits expense
- Finance costs
- Depreciation and amortization expense
- Other expenses
- Total expenses
V Profit before extraordinary items and tax (III-IV)
VI Exceptional items VII Profit before extraordinary items and tax (V-VI)
VIII Extraordinary items
IX Profit before tax (VII-VIII)
X Tax
XI Profit after tax