Question

_____appear in the profit and loss account and are available for distribution as profit, or for creating reserves and funds, or for being used in the business.

• A. Capital profit
• B. Revenue profits
• C. Capital loss
• D. All of the above

Answer 1

The correct option is B Revenue profits

Revenue profits are profits which are earned by carrying on the ordinary business activities of a company. They are recurring or regular in nature and are earned through the sale of goods or provision of services to customers. These are profits earned from the main operations of business. These are calculated by preparing income statement and are available for distribution of profit.