A manager is entitled to a 5% commission on net profit BEFORE charging his commission. If profit is Rs 1,05,000, his commission is: MCQ with Answer and Explanation

Question

A manager is entitled to a 5% commission on net profit BEFORE charging his commission. If profit is Rs 1,05,000, his commission is:

A. Rs 10,500

B. Rs 5,000

C. Rs 4,750

D. Rs 5,250

Answer: Option D

Solution (By JKSSB Mock Tests)

Commission = Profit * (Rate/100) = 1,05,000 * 5% = Rs 5,250.

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

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Question #1

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The 'Indian Accounting Standards' (Ind AS) are issued by:

A. SEBI

B. ICAI

C. RBI

D. MCA (Ministry of Corporate Affairs)

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Correct Answer: Option D

Explanation:
Ind AS are notified by the Ministry of Corporate Affairs under Companies Act.

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Question #2

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The 'Throughput Accounting' emphasises:

A. Maximising production volume

B. Increasing fixed cost

C. Maximising throughput (sales minus material cost) while minimising operating expenses and inventory

D. Reducing labour cost

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Correct Answer: Option C

Explanation:
Throughput accounting is based on the Theory of Constraints.

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Question #3

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The 'Ind AS 115' replaces which earlier standards?

A. AS 10

B. AS 2

C. AS 9 and AS 7

D. AS 3

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Correct Answer: Option C

Explanation:
Ind AS 115 supersedes AS 9 (Revenue Recognition) and AS 7 (Construction Contracts).

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

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