Net loss for a period is ultimately adjusted against: MCQ with Answer and Explanation

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Net loss for a period is ultimately adjusted against:

A. Liabilities

B. Assets

C. Capital

D. Sales

Answer: Option C

Solution (By JKSSB Mock Tests)

Net loss reduces owner's equity/capital.

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

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Question #1

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If Cost of Goods Sold (COGS) is Rs 1,50,000 and Gross Profit is 20% on Sales, what is the Sales value?

A. Rs 1,87,500

B. Rs 1,75,000

C. Rs 2,00,000

D. Rs 1,80,000

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Correct Answer: Option A

Explanation:
If GP is 20% on sales, COGS is 80% on sales. Sales = COGS / 80% = 1,50,000 / 0.8 = Rs 1,87,500.

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

Question #2

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Which of these is a Direct Tax?

A. Customs Duty

B. Goods and Services Tax

C. Excise Duty

D. Income Tax

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Correct Answer: Option D

Explanation:
Income tax is a direct tax because the liability and burden of the tax fall on the same individual.

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Question #3

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A company's current ratio is 2:1. If current liabilities are ₹1,00,000, current assets are:

A. ₹3,00,000

B. ₹50,000

C. ₹1,00,000

D. ₹2,00,000

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Correct Answer: Option D

Explanation:
Current ratio = Current assets / Current liabilities; 2 = CA / 1,00,000 => CA = ₹2,00,000.

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

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