Question

6. If CP > SP, then profit is made from the transaction. Mark True / False.

a) True b) False
is it true?

Answer 1

Question -

True or false :-

• If CP > SP, then profit is made from the transaction.

Answer -

↬ False

Explanation -

• For understanding this let's take an example -

• A person bought a n.b for Rs.100 from a shop and then sold it for Rs. 50

• Here loss of Rs.50 has occured as the selling price is less than the cost price.

↬ Loss = Rs. 100 - Rs. 50 = Rs.50

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Know more -

• If S.P > C.P than profit occurs.

• For eg -

• A person bought a pen for Rs. 10 and sold it for Rs. 20. The selling price is greater than the cost price. So, profit occurs.

↬ Profit = Rs. 20 - Rs. 10 = Rs. 10

Some formulae -

• Loss = Cost price - Selling price

• Profit = Selling price - Cost price

• Selling price = Profit + C.P

• Selling price = C.P - loss

• Cost price = S.P - profit

• Cost price = Loss + S.P

• Profit% = $\sf{\dfrac{Profit \times 100}{C.P}}$

• Loss% = $\sf{\dfrac{Loss \times 100}{C.P}}$

Answer 2

The statement is b) false.

Step-by-step explanation:

• The profit and loss statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period.

• The price at which a product is purchased is called its cost price.
• The price at which a product is sold is called its selling price.

• If the selling price is greater than the cost price, then the difference between the selling price and cost price is called profit.

Profit = Selling Price - Cost Price

• If the selling price is less than the cost price, then the difference between the cost price and the selling price is called loss.

Loss = Cost Price - Selling Price

So, when CP is greater than SP, then loss is made from the transaction.