GENERAL ACCOUNTING PRINCIPLES (GENERAL STUDIES) Part-2

Total Questions: 30

11. Profit for the objective of calculating a ratio may be taken as

  1. (a) Profit before tax but after interest
  2. (b) Profit before interest and tax
  3. (c) Profit after interest and tax
  4. (d) All of the above
Correct Answer: (d) All of the above
Show AnswerDiscussion

12. Gross Profit ratio is also termed as

  1. (a) Gross Profit Margin
  2. (b) Gross Margin to net sales
  3. (c) Both a and b
  4. (d) All of the above
Correct Answer: (c) Both a and b
Show AnswerDiscussion

13. While calculating Gross Profit ratio,

  1. (a) Closing stock is deducted from cost of goods sold
  2. (b) Closing stock is added to cost of goods sold
  3. (c) Closing stock is ignored
  4. (d) None of the above
Correct Answer: (a) Closing stock is deducted from cost of goods sold
Show AnswerDiscussion

14. Gross profit ratio is calculated by

  1. (a) (Gross Profit/Gross sales) × 100
  2. (b) (Gross Profit/Net sales) × 100
  3. (c) (Net Profit/Gross sales) × 100
  4. (d) None of the above
Correct Answer: (d) None of the above
Show AnswerDiscussion

15. Given Sales is 1,20,000 and Gross Profit is 30,000, the gross profit ratio is

  1. (a) 24%
  2. (b) 25%
  3. (c) 40%
  4. (d) 44%
Correct Answer: (b) 25%
Show AnswerDiscussion

16. What will be the Gross Profit if, total sales is Rs. 2,60,000. Cost of net goods sold is Rs. 2,00,000 and Sales return is Rs. 10,000?

  1. (a) 13%
  2. (b) 28%
  3. (c) 26%
  4. (d) 20%
Correct Answer: (d) 20%
Show AnswerDiscussion

17. Net Profit ratio is calculated by

  1. (a) (Gross Profit/Gross sales) × 100
  2. (b) (Gross Profit/Net sales) × 100
  3. (c) (Net Profit/Net sales) × 100
  4. (d) None of the above
Correct Answer: (c) (Net Profit/Net sales) × 100
Show AnswerDiscussion

18. If sales is Rs. 10,00,000, sales returns is Rs. 50,000, Profit Before Tax is Rs. 2,00,000, Income tax is 40%, Net profit ratio is

  1. (a) 12.63%
  2. (b) 20%
  3. (c) 10%
  4. (d) 50%
Correct Answer: (a) 12.63%
Show AnswerDiscussion

19. Operating ratio is calculated by

  1. (a) (Operating Cost/Gross sales) × 100
  2. (b) (Operating Cost/Gross sales) × 100
  3. (c) (Operating cost/Net sales) × 100
  4. (d) None of the above
Correct Answer: (c) (Operating cost/Net sales) × 100
Show AnswerDiscussion

20. Return on Proprietors’ funds is also known as:

  1. (a) Return on net worth
  2. (b) Return on Shareholders’ fund
  3. (c) Return on Shareholders’ investment
  4. (d) All of the above
Correct Answer: (d) All of the above
Show AnswerDiscussion