Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

The correct sequence of statement of profit or loss of a company.

A. Other Income
B. Total Expenses
C. Revenue from Operations
D. Profit before extraordinary items & tax
E. Total Revenue

Choose the correct answer from the options given below:

Options:

C, D, A, B, E

C, D, E, A, B

C, A, E, B, D

A, B, C, D, E

Correct Answer:

C, A, E, B, D

Explanation:

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

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)