A manager is entitled to a commission of 10% on net profit AFTER charging such commission. If the profit before commission is Rs 1,10,000, the commission amount is: MCQ with Answer and Explanation
A manager is entitled to a commission of 10% on net profit AFTER charging such commission. If the profit before commission is Rs 1,10,000, the commission amount is:
A: A Trial Balance agrees when total debits equal total credits. R: An agreeing Trial Balance guarantees the absolute accuracy of the books of accounts. Choose the correct option.
A.A is true but R is false
B.Both A and R are true and R is the correct explanation of A
C.A is false but R is true
D.Both A and R are true but R is NOT the correct explanation of A
Explanation:
A Trial Balance agrees when total debits equal total credits. However, it does not guarantee absolute accuracy, as errors like compensating errors, errors of principle, or complete omissions do not affect the tally. A is true, R is false.
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