Question

Statement 1: Profit is defined as the positive difference between selling price and cost price whenever SP > CP.

Statement 2: Loss is found when CP > SP.

Choose the correct option with respect to the above statements.

• A. Both statements 1 and 2 are true
• B. Only statement 1 is true
• C. Both statements 1 and 2 are false
• D. Only statement 2 is true

Answer 1

The correct option is A

Both statements 1 and 2 are true

Profit is made when SP > CP.
It is calculated as, Profit = SP - CP

Loss is made when CP > SP.
It is calculated as, Loss = CP - SP

Hence, both the statements are true.