Loss on sale of asset is ____________ while calculating operating profit from net profit.

added

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ignored

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deducted

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none

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Solution

The correct option is A added
Operating profit is calculated by deducting the operating expenses from the operating income. Operating expenses are those which are directly related to the core business activity.
Loss on sale of asset is to be added while calculating operating profit from net profit.

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Similar questions

Q. Revenue from Operations, i.e., Net Sales ₹ 8,20,000; Return ₹ 10,000; Cost of Revenue from Operations (Cost of Goods Sold) ₹ 5,20,000; Operating Expenses ₹ 2,09,000; Interest on Debentures ₹ 40,500; Gain (Profit) on Sale of a Fixed Asset ₹ 81,000. Calculate Net Profit Ratio.

Q. Loss on sale of asset is ___________ to profit and loss A/c.

Q. Profit on sale of Asset is __________ to Profit and loss A/c.

From the following calculate

(a) Net Profit Ratio

(b) Operating Profit Ratio

$\begin{matrix} S.No. & I t e m s & A m o u n t R s . 1. & Revenue from Operations (Sales) : & 2, 00, 000 2. & Gross Profit & 75, 000 3. & Office Expenses & 15, 000 4. & Selling Expenses & 26, 000 5. & Interest on Debentures & 5, 000 6. & Accidental losses & 12, 000 7. & Income from Rent & 2, 500 8. & Commission received & 2, 000 \end{matrix}$

Q. Profit on sale of fixed asset is a/an .

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Loss on sale of asset is ____________ while calculating operating profit from net profit.

The correct option is A addedOperating profit is calculated by deducting the operating expenses from the operating income. Operating expenses are those which are directly related to the core business activity. Loss on sale of asset is to be added while calculating operating profit from net profit.

The correct option is A added
Operating profit is calculated by deducting the operating expenses from the operating income. Operating expenses are those which are directly related to the core business activity.
Loss on sale of asset is to be added while calculating operating profit from net profit.