Question

Gopal Sons starts a business by investing Rs. 15 lakh and purchases goods worth Rs.12.5 lakh. At the end of the year he is left with a profit of Rs.1,50,000. The surplus profit of Rs.1,50,000 is a /an_________.

• A. Event
• B. Transaction
• C. Dealing
• D. Operations

Answer 1

The correct option is A Event

Every economic activity is performed through transactions and events.
An event is the happening, consequence or result of the transaction.
Hence in our example, the surplus profit is of 150,000 is the result of business operation(transaction), therefore, it is an event.
Whereas the purchase of goods is a transaction as it is intentionally done by the business.