Question

Arrange the following in correct sequence according to the form and content of statement of Profit and Loss: 
(A) Employee Benefit Expenses 
(B) Tax provided 
(C) Revenue from operations 
(D) Purchase of stock in Trade 
(E) Dividend Income 
Choose the correct answer from the options given below:

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

Hint:

Profit and Loss statement arranges main revenue, other income, cost items, expenses, and finally tax.

Answer 1

The Correct Option is A

Step 1: Order of items in Profit and Loss Statement
Revenue from operations (C) comes first as the main income item.
Dividend income (E) is other income, generally shown after revenue.
Purchase of stock in trade (D) is part of cost of goods sold, shown after income.
Employee benefit expenses (A) are operating expenses appearing next.
Tax provided (B) is shown at the end as a deduction from profit before tax.
Step 2: Conclusion
Correct sequence is: (C), (E), (D), (A), (B).