Skip to content

ACCA Applied Knowledge · Financial Accounting · Statement of profit or loss and other comprehensive income

Zeta Co has the following results for the year: revenue $900,000; cost of sales $540,000; distribution costs $60,000; administrative expenses $90,000; investment income $10,000; finance costs $20,000; income tax expense $38,000. It also had a revaluation gain on land of $25,000. What is total comprehensive income for the year?

Total comprehensive income is $187,000. Profit for the year is $162,000 after operating costs, investment income, finance costs and tax, and the $25,000 land revaluation gain is added as other comprehensive income.

  1. A$162,000
  2. B$187,000Correct
  3. C$137,000
  4. D$172,000

Explanation

Gross profit = 900,000 - 540,000 = 360,000. Less distribution 60,000 and admin 90,000 = 210,000. Add investment income 10,000 = 220,000; less finance costs 20,000 = 200,000; less tax 38,000 = profit of 162,000. Adding OCI of 25,000 gives 187,000. Option $162,000 omits the OCI gain.

Did you get it right without looking?

One question tells you little. A timed set on Statement of profit or loss and other comprehensive income shows your real accuracy, how long you take and where you lose marks.

Practise Statement of profit or loss and other comprehensive incomeFree diagnostic mock

More Statement of profit or loss and other comprehensive income questions