Match list I with list II and choose the correct ans from the options given below:
| LIST 1 | LIST 2 |
| A) Interest charges | I) Employee benefit expenses |
| B) Sale of services | II) Other income |
| C) Salary | III) Revenue from operations |
| D) Dividend income | IV) Finance cost |
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A-IV, B-III, C-I, D-II
Each item goes to its head in the Statement of Profit and Loss (Schedule III):
(A) Interest charges — this matches (IV) Finance cost. Interest on borrowings is the finance cost of the year.
(B) Sale of services — this matches (III) Revenue from Operations. Revenue from operations includes sale of products and sale of services.
(C) Salary — this matches (I) Employees Benefit Expenses. Salary, wages and staff welfare are employee benefit expenses.
(D) Dividend Income — this matches (II) Other incomes. For a company that is not a finance company, dividend received is other income.
NCERT (2026-27 edition):
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