Which of the following would be a suitable format for the statement of financial performance for a medium size furniture store operation as a partnership?
A)Income - expenses = profit
B)Sales - cost of sales = gross profit - expenses = profit
C)Income + expenses = profit
D)Sales - cost of sales = gross profit

Question

Quizplus · Accepted Answer

Option B provides a suitable format of presenting the statement of financial performance for a medium-sized furniture store operated as a partnership. The format considers the gross profit, cost of sales, and expenses, which are key elements in determining the net profit or loss of the business. Option A and C are incomplete and do not provide a breakdown of the factors that contribute to the profit or loss. Option D presents only the gross profit, but does not account for the expenses that reduce it to the net profit or loss.

Which of the Following Would Be a Suitable Format for the Statement