Q 9 – A vendor when could not find buyers for his vegetable at Re 10/kg, reduced the rate to Re 8.10 per kg but uses a faulty weight of 900 gm in place of 1 kg weight. Find the percent change in the actual price or loss. Q 7 – Anil buys a calculator for Re 600 and sells it to Vikash at 10% profit. Vikash sells it to Chandan for 5 % profit. Chandan after using it for certain time, sells it to Dinesh at a loss of 20%.

- Q 18 – A fruit seller sells bananas at a profit of 20%.
- Profit and loss are crucial topics in Quantitative Aptitude sections of various competitive exams.
- To properly assess a business, it’s critical to also look at the balance sheet and the cash flow statement.

Test your knowledge of how to prepare a profit and loss summary with this multiple-choice quiz and worksheet. You should know the different components of a profit and loss summary and understand how to calculate total income. The 11th chapter of our accounting learning course is “Financial Statement”. We’ll go over the 45 most important financial statement questions and their answers in this article. Get a comprehensive guide to profit and loss aptitude questions and answers with different types of questions that candidates are likely to encounter in exams, and provide clear explanations and useful tricks to help them solve these problems with ease. By mastering the concepts and techniques mentioned in this article, candidates can enhance their problem-solving and aptitude skills and increase their chances of success in competitive exams.

## What formula is used to calculate the total income on a profit and loss summary?

To properly assess a business, it’s critical to also look at the balance sheet and the cash flow statement. A company’s statement of profit and loss is portrayed over a period of time, typically a month, quarter, or fiscal year. You have picked up the correct profit figure for this calculation, operating profit, correctly divided operating profit by revenue and multiplied by 100%. This method displays the most permanent assets and liabilities first, followed by the current assets and liabilities. Below is a video explanation of how the profit and loss statement (income statement) works, the main components of the statement, and why it matters so much to investors and company management teams.

It might not seem obvious by looking at a profit and loss statement, but the final figure at the bottom (i.e., the total profit or the total loss) may be very different from the actual amount of cash that’s made or lost. Q 12 – A seller sells a watch at 5% loss. If he had bought it at 20% more and sold it for Re 115 less, he would have incurred a loss of 40%. Q 2 – By selling 33 meters of cloth, one gains the selling price of 11 meters. There are two main categories of accounts for accountants to use when preparing a profit and loss statement.

## Q3: If the cost price of an article is 67 % of the selling price, what is the profit percent?

Q 18 – A fruit seller sells bananas at a profit of 20%. If he increases the selling price of each banana by 25 paisa, he earns a profit of 45%. Find the initial selling price of each banana and also its cost price. If you read these 45 important financial statement questions and answers on a regular basis, you will gain a better understanding of the “Financial Statement” chapter.

Profit and Loss is a topic that is definitely asked in every placement exam. While the questions are not too tricky, some require deeper understanding of concepts, but most of them are based on certain well-known formulas. You will receive your score and answers at the end. Q 16 – A 10% hike in the price of wheat forces a person to purchase 2 kg less for Re 110. Find the new and the original price of the wheat.

## Structure of the Profit and Loss Statement

For how much Chandan sell the calculator to Dinesh. Q 4 – The CP of 25 articles is equal to SP of 20 articles. One of the main jobs of a professional financial analyst is to analyze the P&L of a company in order to make recommendations about the financial strength of the company, attractiveness of investing in it, or acquiring the entire business. If you missed any of the previous chapters of our accounting learning course, you can find them here. Some companies use a fifth category called “other assets” if there are miscellaneous assets that do not fall into any other groups.

Q 14 – Ram sells chocolates at a profit of 20% for Re 60. What will be the percentage loss or gain if he reduces the price to Re 55 due to less demand. The closing balance of the owner’s equity is shown after total liabilities. The total assets will be equal to the sum of the closing balances of the owner’s equity and total liabilities. By reading this post, you can quickly prepare for accounting courses and any competitive tests, such as school and college exams, vivas, job interviews, and so on.

## Income Accounts vs Expenditure Accounts

Profit and loss are crucial topics in Quantitative Aptitude sections of various competitive exams. To succeed in these exams, candidates must have a solid understanding of the cost price (CP) and selling price (SP) formulas, as well as the different types of profit and loss questions. You have picked up the correct profit figure for this calculation, profit before tax, correctly divided profit before tax by revenue and multiplied by 100%. As a result, current assets appear first in the statement of financial position, followed by fixed assets. In the same way, current liabilities are shown first, followed by long-term liabilities. Analysts must go beyond the profit and loss statement to get a full picture of a company’s financial health.

A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period of time. The P&L statement shows a company’s ability to generate sales, manage expenses, and create profits. It is prepared based on accounting principles that include revenue recognition, matching, and accruals, which makes it different from the cash flow statement.