Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Net profit
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Both (A) and (B)
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
None of the above
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is C Gross profit To know the financial position of the business, financial statements are prepared. Normally the financial statements are prepared at the end of the financial year.
Trading account includes the items of purchase and sale of trading goods and direct expenses. The overall outcome of trading account is to know the gross profit of the business.