Net Profit Ratio is calculated on: MCQ with Answer and Explanation

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Net Profit Ratio is calculated on:

A. Gross sales

B. Total assets

C. Capital

D. Net sales

Answer: Option D

Solution (By JKExamLibrary)

Net profit ratio = (Net profit / Net sales) * 100.

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

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

Income Tax is governed under which schedule of the Indian Constitution?

A. 7th Schedule (State List)

B. 8th Schedule

C. 7th Schedule (Union List)

D. 7th Schedule (Concurrent List)

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Correct Answer: Option C

Explanation:
Taxes on income other than agricultural income fall under Entry 82 of List I (Union List) in the Seventh Schedule.

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

Question #2 Report Error

A key challenge of Human Resource Accounting is:

A. Excessive software cost

B. It is banned by Ind AS

C. It reduces taxable income

D. Lack of standardized models to objectively value human capital

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Correct Answer: Option D

Explanation:
Valuing human beings as assets involves subjective assumptions about tenure, capability, and future value, lacking a universally accepted model.

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

Question #3 Report Error

Which of the following statements is true about the Trial Balance?

A. It is a statement

B. It is a part of ledger

C. It is a subsidiary book

D. It is an account

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Correct Answer: Option A

Explanation:
Trial balance is a statement, not an account.

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

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