Which of the following is a profitability ratio? MCQ with Answer and Explanation
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Question #1
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In the Trading Account, 'Wages' paid for production are:
Correct Answer: Option A
Explanation:
Wages are direct expenses, debited to Trading Account.
Wages are direct expenses, debited to Trading Account.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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Which of the following is a test of audit?
Correct Answer: Option D
Explanation:
Vouching is the primary test of audit, involving the examination of documentary evidence to support the transactions recorded in the books of accounts.
Vouching is the primary test of audit, involving the examination of documentary evidence to support the transactions recorded in the books of accounts.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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When analyzing Cost Accounting data, 'Contribution' is useful for:
Correct Answer: Option A
Explanation:
Contribution (Sales - Variable Cost) is a key metric in marginal costing used for managerial decisions like 'Make or Buy', dropping a product, or accepting special orders.
Contribution (Sales - Variable Cost) is a key metric in marginal costing used for managerial decisions like 'Make or Buy', dropping a product, or accepting special orders.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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