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. Contribution / Sales

B. Profit / Sales

C. Variable cost / Sales

D. Fixed cost / Sales

Answer: Option A

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

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The 'Updated Return' under Income Tax (Section 139(8A)) can be filed within:

A. No time limit

B. 3 years

C. 1 year from end of relevant assessment year

D. 2 years from end of relevant assessment year

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Correct Answer: Option D

Explanation:
Updated return can be filed within 24 months from the end of the relevant assessment year, subject to conditions.

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

Question #2

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The 'MAT credit' can be carried forward for:

A. 5 years

B. 15 years

C. Indefinite

D. 8 years

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Correct Answer: Option B

Explanation:
MAT credit can be carried forward for 15 assessment years.

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

Question #3

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Under Ind AS 115, 'Variable Consideration' (like bonuses or penalties) can only be included in the transaction price if:

A. The performance obligation is fully satisfied.

B. The customer has explicitly agreed to the variable amount in the contract.

C. The entity has received the cash for the variable consideration.

D. It is highly probable that a significant reversal in the amount of cumulative revenue will not occur.

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Correct Answer: Option D

Explanation:
Ind AS 115 imposes a constraint on variable consideration. It can only be included in the transaction price to the extent that it is highly probable that a significant reversal of revenue will not occur when the uncertainty is resolved.

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

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