S1: In marginal costing, the Margin of Safety can be calculated as (Profit / P/V Ratio). S2: If the P/V ratio is 40% and the Margin of Safety is ₹50,000, the profit is ₹20,000. Which statement(s) is/are correct? MCQ with Answer and Explanation
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Question #1
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The formula to calculate Cost of Goods Sold (COGS) is:
Correct Answer: Option A
Explanation:
COGS accounts for all direct costs of making/buying the goods actually sold during the period.
COGS accounts for all direct costs of making/buying the goods actually sold during the period.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A cheque of Rs 5,000 was deposited but dishonored. No entry was passed in the Cash Book. To reconcile from a favorable Cash Book balance, you should:
Correct Answer: Option D
Explanation:
The dishonor reduces the pass book balance. To match it, you must deduct the amount from the cash book balance.
The dishonor reduces the pass book balance. To match it, you must deduct the amount from the cash book balance.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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If a transaction involves payment of Rs 10,000 for purchasing a machine, what type of voucher is prepared?
Correct Answer: Option A
Explanation:
A debit voucher is prepared for all cash payments, supporting the outflow of cash for expenses, assets, or creditors.
A debit voucher is prepared for all cash payments, supporting the outflow of cash for expenses, assets, or creditors.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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