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

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

A. ₹3,00,000

B. ₹1,00,000

C. ₹5,00,000

D. ₹4,00,000

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

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Correct Answer: Option C

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