The 'P/V Ratio' (Profit Volume Ratio) is calculated as: MCQ with Answer and Explanation

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The 'P/V Ratio' (Profit Volume Ratio) is calculated as:

A. Fixed cost / Sales

B. Variable cost / Sales

C. Contribution / Sales

D. Profit / Sales

Answer: Option C

Solution (By JKSSB Mock Tests)

P/V Ratio = (Contribution / Sales) × 100.

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

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Question #1

The column 'J.F.' in a ledger account stands for:

A. Journal Folio

B. Journal Format

C. Joint Finance

D. Journal Factor

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Correct Answer: Option A

Explanation:
Journal Folio (J.F.) indicates the page number of the journal from where the specific entry was posted.

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

Question #2

The primary purpose of a cash book is to:

A. Record credit transactions

B. Record all cash receipts and payments

C. Prepare the balance sheet

D. Calculate profit

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Correct Answer: Option B

Explanation:
A cash book serves as both a book of original entry and a ledger account, specifically for recording all cash receipts and payments.

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

Question #3

The use of 'Smart Contracts' in accounting is a direct result of development in:

A. PFMS

B. Double Entry System

C. Cost Control

D. Blockchain Technology

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Correct Answer: Option D

Explanation:
Smart contracts are self-executing contracts with terms written into lines of code, running on blockchain networks.

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

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