The 'Net Profit Margin' is: MCQ with Answer and Explanation

Question
The 'Net Profit Margin' is:
A. Net profit / Net sales
B. Operating profit / Net sales
C. EBIT / Net sales
D. Gross profit / Net sales
Answer: Option A
Solution (By JKSSB Mock Tests)
Net profit margin reflects overall profitability after all expenses.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
A Cash Book serves the purpose of:
A. A Journal only
B. A Trial Balance
C. Both Journal and Ledger
D. A Ledger only
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Correct Answer: Option C

Explanation:
The cash book acts as a journal because transactions are recorded chronologically, and as a ledger because it contains the cash account balance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following is not a part of the Balance Sheet?
A. Current Liabilities
B. Gross Profit
C. Share Capital
D. Fixed Assets
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Correct Answer: Option B

Explanation:
Gross profit is shown in Trading/Profit & Loss Account, not in the Balance Sheet.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The term 'Cloud Accounting' refers to:
A. Accounting for cloud computing expenses
B. Accounting for weather-related losses
C. Manual accounting on paper
D. Using accounting software hosted on remote servers accessed via internet
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Correct Answer: Option D

Explanation:
Cloud accounting uses online software, enabling real-time access and collaboration.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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