A trader sells goods costing ₹20,000 for ₹25,000. The gross profit margin is: MCQ with Answer and Explanation

Question
A trader sells goods costing ₹20,000 for ₹25,000. The gross profit margin is:
A. None
B. 20% on sales? Actually profit 5,000 on sales 25,000 = 20%.
C. 20%
D. 25%
Answer: Option C
Solution (By JKSSB Mock Tests)
Gross profit = 5,000. Gross profit ratio on sales = (5,000/25,000)*100 = 20%.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
In 'Job Costing', costs are accumulated for:
A. Entire factory
B. Each batch or specific order
C. Each department
D. Fixed assets
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Job costing collects costs for each job or order, useful in custom manufacturing.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
In budgetary control, a 'master budget' is:
A. Cash budget only
B. Only sales budget
C. A summary of all functional budgets
D. Capital expenditure budget
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Master budget consolidates all subsidiary budgets (sales, production, cash, etc.) into a comprehensive overall budget.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A company issues 10% debentures of ₹100 each at a discount of 5%, redeemable at a premium of 10%. What is the total loss on issue per debenture to be written off over the life of the debenture?
A. ₹10
B. ₹5
C. ₹0
D. ₹15
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Loss on issue = Discount on issue + Premium on redemption = ₹5 + ₹10 = ₹15 per debenture. This total loss is written off over the tenure of the debentures.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Explore All Accountancy and Book Keeping MCQs
Today's Top Topics
Statistics 1318 Accountancy and Book Keeping 1861
Explore Subjects
Accountancy and Statistics 3179 Maths 5575 Geography GK 6121 Current Affairs 575 Reasoning 2064
Practice Mix
The 'First Phase of the Revolutionary Movement' in India is associated with:
India won the ICC Men's T20 World Cup 2026 for a record how many times?
A boat can row 15 km/h in still water. If the velocity index of the stream tracks at 3 km/h, find the time parameter taken by the boat to row 36 km upstream.
A man sells an article for Rs. 880, gaining 10%. What is the cost price?
Which is a predicative adjective?