Correct Answer:
C. 12.5%
50,000 / 400,000 = 12.5%.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
Net profit is Rs. 50,000 and sales are Rs. 400,000. The net profit margin is:
Related MCQs
Fixed costs are Rs. 80,000, the target profit is Rs. 40,000 and CM per unit is Rs. 20. The units required to reach the target profit are:
A.
6,000 units
B.
4,000 units
C.
2,000 units
D.
8,000 units
Correct answer is:
A. 6,000 units
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The cost of installing a new machine in a factory is:
A.
Revenue expenditure
B.
A drawing
C.
Deferred revenue
D.
Capital expenditure
Correct answer is:
D. Capital expenditure
Do you agree with this answer?
Contribution margin is calculated as:
A.
Sales minus fixed costs
B.
Sales minus total costs
C.
Gross profit minus selling expenses
D.
Sales minus variable costs
Correct answer is:
D. Sales minus variable costs
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Subsequent events are events occurring:
A.
Before the beginning of the financial year
B.
Only after the AGM
C.
During the interim audit only
D.
Between the date of the financial statements and the date of the auditor's report
Correct answer is:
D. Between the date of the financial statements and the date of the auditor's report
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The materiality concept means that:
A.
All items must be recorded individually regardless of size
B.
Only material assets are depreciated
C.
Insignificant items need not be accounted for in strict detail
D.
Only large companies keep accounts
Correct answer is:
C. Insignificant items need not be accounted for in strict detail
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The benefit principle of taxation says that:
A.
Taxes should depend only on income
B.
Taxes should be equal for everyone
C.
Taxes should be paid according to the benefits received from government services
D.
Taxes should be avoided
Correct answer is:
C. Taxes should be paid according to the benefits received from government services
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