Which of the following relationships is/are false?
AOpening Stock + Purchases – Closing Stock = Cost of Sales
BNet Profit = Gross Profit – Administration and Other expenses
CNet Profit = Gross Profit + Administration expenses and Other expenses
DBoth B. and C. above
Correct answer
D. Both B. and C. above
Explanation
Net Profit= Gross Profit- Administration and other expenses. Hence option B. is false. Opening stock+ Purchases-Closing stock= Cost of material consumed not cost of sales. Option (c ) is false.