Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Arrange the following in the context of Statement of Profit and Loss.

A. Other income
B. Expenses
C. Total Revenue
D. Revenue from operation
E. Profit before tax and extra-ordinary item

Choose the correct answer from the options given below:

Options:

A, D, C, B, E

D, A, C, B, E

C, B, E, D, A

D, A, E, B, C

Correct Answer:

D, A, C, B, E

Explanation:

The correct answer is Option (2) - D, A, C, B, E.

STATEMENT OF PROFIT AND LOSS

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 amortisation 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)