CA Foundation Exam > CA Foundation Questions > A company has a gross profit of $42,000. If t...
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A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?
- a)$53,000
- b)$49,000
- c)$31,000
- d)$59,000
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A company has a gross profit of $42,000. If the total of management ex...
Net profit is calculated by adding other income to gross profit and then subtracting expenses.
Net Profit = Gross Profit + Other Income - Management Expenses
Net Profit = $42,000 + $18,000 - $11,000 = $49,000
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Net Profit = Gross Profit + Other Income - Management Expenses
Net Profit = $42,000 + $18,000 - $11,000 = $49,000
Most Upvoted Answer
A company has a gross profit of $42,000. If the total of management ex...
Given:
Gross profit = $42,000
Management expenses = $11,000
Other income = $18,000
To find:
Net profit
Net profit can be calculated using the formula:
Net profit = Gross profit - Management expenses + Other income
Substituting the given values into the formula, we get:
Net profit = $42,000 - $11,000 + $18,000
Simplifying the equation, we get:
Net profit = $49,000 + $18,000
Therefore, the net profit is $53,000.
Explanation:
The gross profit of a company is the total revenue earned from its primary business activities, minus the cost of goods sold. In this case, the gross profit is given as $42,000.
Management expenses are the costs incurred in running and managing the company's operations. These expenses include salaries, office rent, utilities, etc. In this case, the management expenses are given as $11,000.
Other income refers to any additional revenue earned by the company from non-primary business activities. This could include interest income, rental income, or gains from the sale of assets. In this case, the other income is given as $18,000.
To calculate the net profit, we subtract the management expenses from the gross profit and add the other income. This gives us the final figure for the company's net profit.
In this case, the net profit is calculated as $42,000 - $11,000 + $18,000 = $49,000 + $18,000 = $53,000. Therefore, the correct answer is option B, $53,000.
Gross profit = $42,000
Management expenses = $11,000
Other income = $18,000
To find:
Net profit
Net profit can be calculated using the formula:
Net profit = Gross profit - Management expenses + Other income
Substituting the given values into the formula, we get:
Net profit = $42,000 - $11,000 + $18,000
Simplifying the equation, we get:
Net profit = $49,000 + $18,000
Therefore, the net profit is $53,000.
Explanation:
The gross profit of a company is the total revenue earned from its primary business activities, minus the cost of goods sold. In this case, the gross profit is given as $42,000.
Management expenses are the costs incurred in running and managing the company's operations. These expenses include salaries, office rent, utilities, etc. In this case, the management expenses are given as $11,000.
Other income refers to any additional revenue earned by the company from non-primary business activities. This could include interest income, rental income, or gains from the sale of assets. In this case, the other income is given as $18,000.
To calculate the net profit, we subtract the management expenses from the gross profit and add the other income. This gives us the final figure for the company's net profit.
In this case, the net profit is calculated as $42,000 - $11,000 + $18,000 = $49,000 + $18,000 = $53,000. Therefore, the correct answer is option B, $53,000.
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A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer?
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A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer?.
A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A company has a gross profit of $42,000. If the total of management expenses is $11,000 and other income is $18,000, what is the net profit?a)$53,000b)$49,000c)$31,000d)$59,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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