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: Profit and Loss Statement Item Order
Revenue from operations (C) is the primary income source and is listed first.
Dividend income (E) is categorized as other income and typically follows revenue.
The purchase of stock in trade (D) is part of the cost of goods sold and is presented after income items.
Employee benefit expenses (A) are operating expenses and are listed next.
Tax provided (B) is deducted from profit before tax and appears at the end.
Step 2: Final Sequence
The correct order is: (C), (E), (D), (A), (B).