CUET UG•Accountancy•Sequence
Q9. The correct sequence of statement of profit or loss
Choose an option
Correct Answer
c
Detailed Explanation
The correct sequence for the statement of profit or loss:C. Revenue from Operations: This is the starting point, as it represents the primary source of income generated by the company.A. Other Income: After accounting for revenue from operations, other income is added. Other income includes non-operational income sources, such as interest, rent, or dividends.E. Total Revenue: This is the sum of revenue from operations and other income, representing the company's total income for the period.B. Total Expenses: Next, total expenses are subtracted from the total revenue. This includes all the costs and expenditures incurred by the company in the relevant period.D. Profit before Extraordinary Items & Tax: Finally, after subtracting total expenses from total revenue, you arrive at the profit before considering extraordinary items and tax. This represents the company's operating profit.