Question

If direct income is more than direct expenses in the final accounts, it depicts​

Answer 1

Answer:

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Explanation:

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Answer 2

Answer:

If direct income is more than direct expenses in the final accounts, it depicts​ Gross Profit

Final Accounts include Trading A/C, Statement of Profit & Loss, Balance sheet

Direct income and Direct Expense comes in Trading a/c as it is directly related to the business that is being carried on, i.e., in trading a/c only direct incomes and expenses are written.

Explanation:

Information about gains or losses from various trading activity is provided by the trading account. The net profit or loss for the period is calculated using the profit and loss account. The organization's gross profit and net profit are determined using the trading and P&L accounts.

Utilizing the trading account, you may examine the gross result, or profit (loss) for the time, in the income statement. Analyze the outcomes of trading to establish the profit made or loss incurred on any trading activity.

The trading account is divided primarily into credit and debit. Direct expenses and direct incomes are shown in the debit and credit parts, respectively.

The expenditures incurred by the organisation are included in the direct expenses. These costs include fuel, power, freight, insurance, inbound transportation, store use, etc. While costs incurred from operations after the sale of goods are included in direct incomes.

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