A company's net profit before tax is ₹5,00,000, tax rate 30%. Preference dividend ₹20,000. Number of equity shares 50,000. EPS is: MCQ with Answer and Explanation

Question

A company's net profit before tax is ₹5,00,000, tax rate 30%. Preference dividend ₹20,000. Number of equity shares 50,000. EPS is:

A. ₹7.00

B. ₹6.60

C. ₹5.60

D. ₹6.00

Answer: Option B

Solution (By JKSSB Mock Tests)

PAT = 5,00,000 - 1,50,000 tax = 3,50,000. Less preference dividend 20,000 = 3,30,000. EPS = 3,30,000 / 50,000 = ₹6.60.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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In budgetary control, a 'master budget' is:

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C. Cash budget only

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Correct Answer: Option D

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Master budget consolidates all subsidiary budgets (sales, production, cash, etc.) into a comprehensive overall budget.

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The concept of 'Social Audit' gained mandatory prominence in India under which scheme?

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Correct Answer: Option D

Explanation:
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) legally mandated regular social audits by Gram Sabhas to monitor works.

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X and Y share profits 3:2. They admit Z for 1/5th share, which he gets entirely from X. The new profit sharing ratio will be:

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Correct Answer: Option D

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