A company's 'Return on Capital Employed' (ROCE) improved from 12% to 15%. This indicates: MCQ with Answer and Explanation

Question
A company's 'Return on Capital Employed' (ROCE) improved from 12% to 15%. This indicates:
A. Increase in debt
B. Decrease in profit
C. Decrease in efficiency
D. Better utilisation of capital
Answer: Option D
Solution (By JKSSB Mock Tests)
ROCE measures profitability relative to capital employed; increase signals improved efficiency.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
A bill of exchange for ₹20,000 discounted with bank for ₹19,500. The discount charged is:
A. ₹1,000
B. ₹20,000
C. ₹500
D. ₹19,500
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Correct Answer: Option C

Explanation:
Discount = Face value - Amount received = 20,000 - 19,500 = ₹500.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The gross profit ratio is 25%. If sales are ₹4,00,000, what is the cost of goods sold?
A. ₹1,00,000
B. ₹5,00,000
C. ₹4,00,000
D. ₹3,00,000
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Correct Answer: Option D

Explanation:
Gross Profit = 25% of 4,00,000 = ₹1,00,000. COGS = Sales - Gross Profit = 4,00,000 - 1,00,000 = ₹3,00,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Contingency Fund' of India is used for:
A. Defense expenditure
B. Routine government expenses
C. Unforeseen expenditure pending authorization by Parliament
D. Interest payments
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Correct Answer: Option C

Explanation:
Contingency Fund is at the disposal of the President to meet urgent unforeseen expenditure.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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