Answer to Question #97550 in Economics for Joshua

Question

5.Aderoju and Sons made a net loss of N 19,267,000 after an accumulated expenses of N52,329,000. What was the gross profit amount?
a.71586000
b.19267000
c.52329000
d.33062000

6.The concept which states that in measurement of profit, costs incurred in generating revenue should be reported together in the period they arise is ….....
a.Matching
b.Realisation
c.Prudency
d.Materiality

Answer 1

5. Gross profit = Net profit + Expenses = 52,329,000 - 19,267,000 = N33,062,000.

So, the correct answer is d.

6. The concept which states that in measurement of profit, costs incurred in generating revenue should be reported together in the period they arise is matching.

So, the correct answer is a.