Question
Mr. Joseph makes 1800 articles at a cost of 40
paise/article. He fixed the selling price such that if only 1000 articles are sold, he would have made profit of 50% on the outlay. However, 500 articles get spoilt and he was able to sell 1300 articles at this price. Find his actual profit percent as the percentage of total outlay assuming that the unsold articles are useless?Solution
CP of 1800 articles = 1800 ×40/100 = Rs 720 SP of 1000 articles = 720 + 720 ×50/100 = Rs 1080 SP of 1 article = 1080/1000 = 27/25 SP of 1300 articles = 27/25× 1300 = Rs 1404 Profit = 1404 – 720 = Rs 684 Profit % = 684/720× 100 = 95%
Which of the following is a primary objective of auditing?
An auditor's sample for test of controls is least likely to be designed to:
Which of the following is an example of an inherent limitation of an audit?
The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated is known as:
Why must auditors obtain an understanding of internal control even if they do not intend to rely on it?
An audit conducted between two annual audits is known as a:
Which balance is least suited to positive confirmation?
Which auditing standard outlines the auditor's responsibilities relating to fraud in an audit of financial statements?
‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of:
Which of the following financial statements can be prepared using a receipt and payment account?
