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Grouping of Items in Statement of Profit and Loss

Profit and lo...

Question

Profit and loss account of business shows the _________.

A

Net Profit Earned

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B

Gross Profit Earned

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C

Balance of all Accounts

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D

Capital Employed in Business

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Solution

The correct option is A Net Profit Earned
Profit & loss account of the business shows the net profit of the organization for a particular period. This has been calculated by reducing all the indirect expenses from the gross profit.

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