Gross Profit is equal to_________?

Related Mcqs:

1. Riaz holds an average inventory of 36,000(CP) with an inventory turnover of 5 times. If the firm makes a gross profit of 25% on sales, find the total sales of the company.

   A. 2,40,000
   B. 2,10,000
   C. 2,00,000
   D. 1,80,000

2. Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.

   A. 50,000
   B. 55,000
   C. 60,000
   D. 65,000

3. Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

   A. Added, Reduced
   B. Added, Added
   C. Deducted, Added
   D. Deducted, Deducted

4. ________ is the gross inflow of economic benefits?

   A. Assets
   B. Liabilities
   C. Income
   D. Expenses

5. The gross decrease in economic benefits for the business are what?

   A. Expenses
   B. Obligations
   C. Creditors
   D. Income or gain

6. A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?

   A. $2000 will be debited in cash book
   B. $2000 will be credited in cash book
   C. $4000 will be debited in cash book
   D. $4000 will be credited in the cash book

7. From the following details what will be the partners commission? Net profit before charging partners commission 65,000. Partners commission 11% before charging such commission

   A. 6441
   B. 5431
   C. 7150
   D. 5876

8. Profit on sale of old plant is:___________?

   A. In Trading A/c
   B. In Profit and Loss Appropriation A/c
   C. Profit and Loss A/c
   D. Being a non operating item ignored

9. Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?

   A. 1,600
   B. 1,500
   C. 1,000
   D. 1,800

   Updated by: Mohammad Ejaz

10. If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.

    A. 0.65
    B. 0.35
    C. 1.50
    D. 5.29