A suitable format for the statement of financial performance for a medium size furniture store operating as a partnership would be:
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 is the suitable format for the statement of financial performance for a medium-size furniture store operating as a partnership. It includes the calculation of gross profit by subtracting the cost of sales from the sales and then deducting the expenses to calculate the net profit. This format provides a clear picture of the revenue, cost of goods sold, gross profit, and net profit of the business.

A Suitable Format for the Statement of Financial Performance for a Medium