Question : What is the formula for the cost of revenue from operations?

Option 1: Sale – Net Profit

Option 2: Sale – Gross Profit

Option 3: Sale – Closing Inventory

Option 4: Purchase – Closing Inventory

Question : Which of the following statements is false?

Option 1: Cost of Revenue = Opening Inventory + Purchases + Carriage from Operations + Wages + Other Direct Charges - Closing Inventory

Option 2: Cost of Revenue from Operations = Revenue from Operations (Cost of Goods Sold) - Gross Profit.

Option 3: Revenue from Operations + Gross Loss= cost of revenue from operation

Option 4: None of the above

Question : Which of the following statements is false?

Option 1: Cost of Revenue = Opening Inventory + Purchases + Carriage from Operations + Wages + Other Direct Charges - Closing Inventory

Option 2: Cost of Revenue from Operations = Revenue from Operations (Cost of Goods Sold) - Gross Profit.

Option 3: Revenue from Operations + Gross Loss= cost of revenue from operation

Option 4: None of the above

Question : What formula is used to compute the inventory turnover ratio?

Option 1: Cost of Revenue from Operations/Average Inventory

Option 2: Average Inventory/Cost of Revenue from Operations

Option 3: Average Inventory/Revenue from Operations

Option 4: Gross Profit/Average Inventory

Question : Opening Inventory Rs.29,000; Closing Inventory Rs.31,000; Revenue from Operations (Sales) Rs.3,20,000; Gross Profit Ratio 25% on Revenue from Operations. 

Inventory Turnover Ratio will be

Option 1: 6 times 

Option 2: 4 times 

Option 3: 8 times 

Option 4: None of the above