Question
The ratio of cost price to the marked price of an
article is 5:8. The article had been marked above its cost price by Rs. 216. If the article was sold at a discount of Rs. 180, then find the profit/loss percentage incurred.Solution
Let the cost price and marked price of the article be Rs. 5x and Rs. 8x, respectivelyAccording to the question,8x – 5x = 216Or, x = 72Therefore, cost price of the article = 5x = Rs. 360Marked price of the article = 8x = Rs. 576Selling price of the article = 576 – 180 = Rs. 396Required profit percentage = {(396 – 360)/360} × 100 = 10%
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?
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