{"id":48842,"date":"2024-04-15T22:47:10","date_gmt":"2024-04-15T22:47:10","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=48842"},"modified":"2024-04-15T22:47:10","modified_gmt":"2024-04-15T22:47:10","slug":"arrange-the-following-items-in-the-order-of-their-appearance-in-the-preparation-of-financial-statements-1-net-profit-2-gross-profit-3-cash-at-bank","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/arrange-the-following-items-in-the-order-of-their-appearance-in-the-preparation-of-financial-statements-1-net-profit-2-gross-profit-3-cash-at-bank\/","title":{"rendered":"Arrange the following items in the order of their appearance in the preparation of financial statements. 1. Net profit 2. Gross profit 3. Cash at bank"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9731b4e5dc3\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    1, 2, 3                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    3, 2, 1                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    2, 1, 3                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    2, 3, 1                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>C. 2, 1, 3<\/strong><\/p>\n<p>Cash at bank is the first item to appear in the preparation of financial statements, followed by gross profit and net profit.<\/p>\n<p>Cash at bank is the most liquid asset of a company and is therefore the first item to be listed on the balance sheet. Gross profit is the difference between the revenue generated by a company and the cost of goods sold. Net profit is the difference between gross profit and all other expenses incurred by a company.<\/p>\n<p>Here is a more detailed explanation of each item:<\/p>\n<ul>\n<li><strong>Cash at bank<\/strong> is the amount of cash that a company has on hand. This includes cash in the bank, as well as cash in hand. Cash at bank is the most liquid asset of a company, which means that it can be easily converted into cash.<\/li>\n<li><strong>Gross profit<\/strong> is the difference between the revenue generated by a company and the cost of goods sold. Revenue is the total amount of money that a company receives from selling its products or services. Cost of goods sold is the cost of the goods that a company sells. Gross profit is a measure of the profitability of a company&#8217;s sales.<\/li>\n<li><strong>Net profit<\/strong> is the difference between <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n         <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> gross profit and all other expenses incurred by a company. Expenses include things like cost of goods sold, salaries, rent, and utilities. Net profit is a measure of the overall profitability of a company.<\/li>\n<\/ul>\n<p>The order in which these items appear on the financial statements is important because it provides information about the financial health of the company. Cash at bank is the most liquid asset, so it is listed first. Gross profit is a measure of the profitability of the company&#8217;s sales, so it is listed second. Net profit is a measure of the overall profitability of the company, so it is listed last.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Arrange the following items in the order of their appearance in the preparation of financial statements. 1. Net profit 2. Gross profit 3. 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