The gross profit ratio is 25%. If sales are ₹4,00,000, what is the cost of goods sold? MCQ with Answer and Explanation

Question

Share Report Error

The gross profit ratio is 25%. If sales are ₹4,00,000, what is the cost of goods sold?

A. ₹3,00,000

B. ₹4,00,000

C. ₹5,00,000

D. ₹1,00,000

Answer: Option A

Solution (By JKSSB Mock Tests)

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

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

Ind AS (Indian Accounting Standards) are converged with:

A. IFRS (International Financial Reporting Standards)

B. Chinese Accounting Standards

C. US GAAP

D. UK GAAP

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
To align with global practices, India developed Ind AS which are substantially converged with IFRS.

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

Question #2

'Angel Tax' is a term used for tax on:

A. Investments in startups by angel investors above fair market value

B. Income of angels

C. Religious institutions

D. Charitable trusts

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Angel tax refers to Section 56(2)(viib) tax on excess share premium received by closely held companies.

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

Question #3

The 'Liberalised Remittance Scheme' (LRS) allows a resident individual to remit up to:

A. No limit

B. USD 2,50,000 per financial year

C. USD 1,00,000 per financial year

D. USD 50,000

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Under LRS, resident individuals can remit up to USD 2,50,000 per financial year for permissible transactions.

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

Explore All Accountancy and Book Keeping MCQs