Why Accountants have to or must prepare INCOME STATMENT in
two stages Gross Profit And Net Profit
Answer Posted / dambar dev ojha
To know the operaing expenses and direct expenses.
| Is This Answer Correct ? | 4 Yes | 1 No |
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While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was valued more by Rs.50,000. As a result (a) Previous year’s profit is overstated and current year’s profit is also overstated (b) Previous year’s profit is understated and current year’s profit is overstated (c) Previous year’s profit is understated and current year’s profit is also understated (d) Previous year’s profit is overstated and current year’s profit is understated
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