Question
A man spends 40% of his income on rent, 30% on food, and
20% on other expenses. He saves the remaining ₹12,000. What is his total income?Solution
Let total income = ₹x. Expenses = 40% + 30% + 20% = 90% of ₹x. Savings = 10% of ₹x = ₹12,000. x = ₹12,000 / 10% = ₹12,000 × 10 = ₹1,20,000. Correct option: B
A firm’s EBIT is ₹5,00,000, interest expense is ₹1,00,000. What is the Degree of Financial Leverage (DFL)?
"Window Dressing" in accounting refers to:
The difference between the total debits and total credits of an account is called:
The law of demand states that, other things being equal:
Prepaid Rent appearing in the Trial Balance is treated as:
Which accounting principle/concept states that revenue should be recognized when it is earned, regardless of when cash is received?
The "Matching Principle" requires that:
The primary objective of financial accounting is to:
Goodwill is a/an:
If an asset is purchased for ₹1,00,000 with a residual value of ₹10,000 and a life of 9 years, the annual depreciation under the Straight Line Metho...
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