Question

Statement 1: Profit is defined as the positive difference between selling price and cost price (S.P > C.P).

Statement 2: Loss is found when (C.P > S.P)

• A. Both the statements 1 & 2 are true
• B. Only Statement 1 is true
• C. Both the statements 1 & 2 are false
• D. Only Statement 2 is true

Answer 1

The correct option is A

Both the statements 1 & 2 are true

If an article is sold for more than it's cost, then it is said to have been sold at a profit.
Profit = Selling Price - Cost Price
i.e Profit = SP - CP
Profit is always calculated when (S.P > C.P)
A loss occurs when an item is sold for less than it's cost price.
Loss = Cost Price - Selling Price
i.e Loss = CP - SP​​​​​​​
​​​​​​​Loss is always calculated when (C.P > S.P)