If there is Revenue from Operation Rs. 1,20,000 and gross profit is 20% of cost, then the amount of gross profit will be : Option 1: Rs. 24,000 Option 2: Rs. 48,000 Option 3: Rs. 20,000 Option 4: Rs. 40,000

Answer: Rs. 20,000. Solution: GP is 20 percent of cost, so Sales = 120 percent of cost. Cost = (1,20,000)/1.20 = 1,00,000. Gross Profit = 1,20,000 minus 1,00,000 = Rs. 20,000.

Financial Statements

Ratios

Easy

If there is Revenue from Operation Rs. 1,20,000 and gross profit is 20% of cost, then the amount of gross profit will be :

Rs. 24,000

Rs. 48,000

Rs. 20,000

Rs. 40,000

✅ Correct Option: 3

GP is 20 percent of cost, so Sales = 120 percent of cost.

Cost = $\frac{1,20,000}{1.20} = 1,00,000$ .

Gross Profit = 1,20,000 minus 1,00,000 = Rs. 20,000.

2025: 4 June Shift 2

Higher turnover ratio means:

2025: 2 June Shift 2

Operating expense ratio is

2025: 3 June Shift 1

Match List-I with List-II

List–I	List–II
(A) Profitability Ratios	(I) This refers to the ratios that are calculated for measuring the efficiency of operations of a business based on effective utilization of resources.
(B) Activity Ratios	(II) The ability of a business to pay the amount due to stakeholders as and when it is due.
(C) Liquidity Ratios	(III) The ability to meet its contractual obligations towards stakeholders, particularly towards external stakeholders.
(D) Solvency Ratios	(IV) It refers to the analysis of profits in relation to revenue from operations or funds (or assets) employed in the business.

Choose the correct answer from the options given below:

2022: 16 July Shift 2

If there are Fixed assets of Rs.10,00,00 Current assets of Rs.6,00,000, Current liabilities of Rs.3,00,000 and Net profit before Interest and Tax of Rs.2,60,000; then Return on Investment will be:

2026: 11 May Shift 2

The two basic measures of liquidity are:

2026: 20 May Shift 1

From the following details, calculate interest coverage ratio: Net Profit after tax Rs. 1,20,000; 15% Long-term debt 20,00,000; and Tax rate 40%.

If there is Revenue from Operation Rs. 1,20,000 and gross profit is 20% of cost, then the amount of gross profit will be :

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)