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Home Questions VZGC8AQH69
Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

A company’s net sales are ₹ 15,00,000; the cost of sales is ₹ 10,00,000 and indirect expenses are ₹ 3,00,000, then what is the amount of gross profit?

Options:

₹12,00,000

₹2,00,000

₹5,00,000

₹13,00,000

Correct Answer:

₹5,00,000

Explanation:

Gross profit = Net sales- COGS
Indirect expenses are not considered while calculating gross profit. It is subtracted while calculating net profit.

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