Operating profit (ebit) - class-XI
Description: operating profit (ebit) | |
Number of Questions: 97 | |
Created by: Rani Rajan | |
Tags: financial statements - i commercial studies financial statements of business organisations financial statements of sole proprietorship elements of accounts final accounts of sole proprietorship final accounts company final accounts accountancy final accounts of sole proprietors - 1 |
Which of the following is correct?
While calculating operating profit, the following are not taken into account:
If the total of the credit side of the profit and loss account is more than the total of the debit side, the difference is the net profit.
The companies globalize their operations through defficient means ________________.
Which of the following statements is true in case of Joint Venture?
___________ is the part of income statement, which is prepared to ascertain the profit/loss for a given accounting period.
The ___________ measure net profit/loss by matching revenues and expenses according to the accounting principles.
While calculating operating profit, which of the following is not taken into account?
While calculating operating profit, the incomes and expenses of purely financial nature are ________into account.
_______ profit is the profit earned through the normal operations and activities of the business.
Operating profit is the _______ of operating revenue over operating expenses.
__________ is the gross inflow of economic benefits.
If the operating expenses exceed gross profit, the excess is referred to as ______________.
_____________ = net profit + non operating expenses - non operating incomes.
Anju Pvt. Provides following information:
Rs.
Fixed cost = 90,000
Sales = 3,00,000
Profit = 60,000
What is the margin of safety of the company?
Sales - Cost of goods sold = ______________.
Operating profit is __________ of operating revenue over operating expense.
Which of the following items are not considered while calculating operating profit?
EBIT stands for ____________.
Operating profit is the profit a business earns from the business through the _________.
Loss on sale of asset is ____________ while calculating operating profit from net profit.
Operating Profit is also known as ____________.
__________ is non operating expense.
Interest and taxes are ___________ from operating profit to find out the net profit.
___________ is finance expense.
Select the most appropriate alternative from those given below:
Gross Profit or Gross Loss is transferred to _______ Account.
Excess of credit over debit in Profit and Loss A/c indicates ________.
Select the most appropriate alternative from those given below:
Credit balance of Profit and Loss A/c indicates _______ .
An account to which the balance in depreciation account is transferred is _____________ .
Expenses which are incurred to operate the business smoothly and efficiently are known as ________.
______ is (are) an example of operating expenses.
______ is/are example(s) of non-operating income.
Items of business operations does not include _________.
Net profit = Rs. 19,000
Non operating expenses = Rs. 500
Non operating incomes = Rs. 0
Using above information calculate Operating profit.
Formula of Operating profit is equal to ___________.
Excess of gross profit over operating expenses is known as __________.
While calculating _______, the incomes and expenses of a purely financial nature are not taken into account.
Opening balance of debtors is Rs. 18,000. 5% provision for bad debts is required to be provided on debtors. If the debtors balance is increased during the year by Rs. 5,000 and the provision for bad debt has a debit balance of Rs. 350 after transferring bad debts, the charge against the profit and loss account is ____________.
Net result of the business operation is reflected in ___________.
Operating profit is the excess of operating expenses over operating revenues.
Sales - Purchase - Operating expenses is equal to __________.
Read the following which is taken from an income statement.
Rs. | |
---|---|
Opening stock | $50,000$ |
Sales | $1,60,000$ |
Freight incurred | $10,000$ |
Sales returns | $10,000$ |
Gross profit on sales | $60,000$ |
Net loss for the year | $10,000$ |
Purchases | $1,00,000$ |
Purchases returns | $9,000$ |
The value of closing stock will be:
The loss on sale of old motor car is debited to___________.
The aim of preparing Profit and Loss Account is to find out__________.
Operating profit stated as a subtotal on a companies income statement before all general and administrative expenses.
Operating profit represents the spending power of the company with regard to revenues generated from ongoing operations.
Operating profit is also known as operating income, or earning before _______.
_______ is the income earned from the core operations of a business, excluding any financing or tax-related issues.
The concept of _______ is used to investigate the profit-making potential of a business, excluding all extraneous factors.
If operating income is negative, a business will likely require additional outside funding to remain in operation.
Operating profit is calculated as:
Net profit + Non operating incomes - Non operating Expenses.
Calculate operating profit:
operating revenue = Rs. 10,000,000; COGS = Rs. 4,000,000; general and administrative expenses = Rs. 3,000,000; interest expense= Rs. 4,000,000; and income taxes = 900,000.
A second hand machinery was purchased for $Rs. 10,00,000$ five years ago and was overhauled by carrying out some current repairs at a cost of $Rs. 1,00,000$. It has also an accumulated depreciation of $Rs. 5,00,000$. It has been desposed of in the beginning of the sixth year for $Rs. 6,00,000$. Profit/loss on such disposal shall be_________.
Which one of the following will lead to under statement of net profit?
In the case of downward revaluation of an asset which is for the first time, the account to be debited is _________.
Which of the following is NOT true with regard to preparation of Profit & Loss Account?
The Profit and Loss A/c shows the ________________.
Cash Profit is?
While preparing final account, to record loss in stock due to fire or accidents which of the following adjustment entry will passed?
Stock A/cTo Creditors A/c | Dr. |
---|---|
Profit & Loss A/cTo Stock A/c | Dr. |
Stock A/cTo Capital A/c | Dr. |
Debtors A/cTo Stock A/c | Dr. |
During the year goods destroyed by fire was Rs. $10,000$. This insurance company accepted the claim for Rs. $6,000$ and paid the money after the close of financial year. In relation to this which of the following statement is correct?
State the reasons whether the following are true or false.
The gain from sale of capital assets need not be added to revenue to ascertain the net profit of a business.
From the following details calculate the net profit for the year ending $31-3-2015$
Particulars | Rs. |
---|---|
Opening Stock | $1,50,000$ |
Purchase | $2,50,000$ |
Manufacturing Expenses | $80,000$ |
Selling Expenses | $20,000$ |
Administration Expenses | $10,000$ |
Financial Charges | $5,000$ |
Sales | $5,55,000$ |
Sales include damaged goods sold for Rs. $5,000$ against the cost price of Rs. $12,000$. Gross profit margin on normal sales is $20\%$ on the sales.
Which is the characteristic feature of profit & loss account?
In a sole traders profit and loss account firm taxation accounts are not present because ______________.
Everyday office expenses are charged to _____________.
Which of the following would not appear in the profit and loss account?
__________ profit is profit before interest and tax (EBIT).
Dividend received from shares entry is made in ______________.
Basic principle to be followed while preparing trading and profit & loss account is ____________________.
Which statement is true?
________ is not the integral part of profit & loss account.
What is transferred to capital account?
Adjusted profit and loss are used in____________.
Which is the characteristic feature of profit & loss account?
The trading account does not __________.
Valuing closing stock at a cost is an application of which concept?
Assuming no returns outwards or carriage inwards, the cost of goods sold will be equal to _______.
_______ is the part of income statement, which is prepared to ascertain the profit/ loss for a given accounting period.
Gross profit less expense is known as __________.
Net turnover can be calculated as ____________.
Which of the following principle/s must be kept in mind while preparing Trading and Profit and Loss Account?
The _________ measures net profit/ loss by matching revenues and expenses according to the accounting principles.
Which of the following is NOT true with regard to preparation of Profit and Loss Account?
At the time of preparation of financial accounts, bad debts recovered account will be transferred to______________.
Firms aim at maximization of ______ profit.
Net Profit is equal to ______________.
Operating Profits is equal to _________________.
Operating Cost is equal to _________________.
Capital introduced in the beginning of the year by Ram is Rs. $40,000$. Further capital introduced during the year Rs. $1000$. Drawings for the year is Rs. $200$ per month and Closing capital is Rs. $53,600$. Determine the profit/loss for the year ended?
The gain from sale of capital assets need not be added to revenue to ascertain the ________________.
On $31^{st}$ March, $2009$ Ram has loan of Rs. $50,000$ and creditors of Rs. $80,000$ Fixed assets of Rs. $72,000$, stock Rs. $90,000$ and cash in hand Rs. $60,000$. If he had started business on April $1$ $2008$ with capital of Rs. $50,000$. Compute Profit earned by Ram for year $2008-09$.
There was a stock of Rs. $5,500$ out of which stock of Rs. $500$ was burnt due to fire and was disposed off for Rs. $200$. Remaining goods were sold at $25\%$ above cost price. Find net profit.
Final Accounts of a company are prepared according to _________ of companies Act, $2013$.
According to the Companies Act, $2013$, a company may issue fully paid up bonus shares to its members, out of ___________.
While calculating Operating profit the incomes and expenses of purely ____________ nature are not taken into account.
Income derived from, normal operation of the business is called ________.
Given the following data:
Gross profit Rs.$6,700$; Carriage Inwards Rs.$250$; received Rs.$575$ and other expenses Rs.$3,600$. The net profit of the firm would be: