Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Select the correct sequence from the following in the context of Statement of Profit and Loss :

(A) Profit before tax and extra-ordinary item
(B) Total Revenue
(C) Other Income
(D) Expenses
(E) Revenue from Operation

Choose the correct answer from the options given below :

Options:

(B), (A), (C), (D), (E)

(A), (B), (D), (E), (C)

(E), (C), (B), (D), (A)

(A), (B), (C), (D), (E)

Correct Answer:

(E), (C), (B), (D), (A)

Explanation:

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

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)