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Assertion (A)… (Class 12 Accountancy SQP 2025-26, Q28b)

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AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · Assertion-reason

CBSE Class 12 Accountancy sample paper 2025-26: question 28(b)

From the official CBSE sample question paper for 2025-26, section B-I, question 28(b), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q28(b) · 1 mark · Assertion-reasonCompetency-basedAccounting Ratios

Assertion (A) :- Gross Profit Ratio is always higher than Net Profit Ratio.
Reason (R) :- To calculate Net Profit, Indirect Expenses are subtracted from Gross Profit and Indirect Incomes are added to Gross Profit.

  1. (A)Both A and R are correct, and R is the correct explanation of A
  2. (B)Both A and R are correct, but R is not the correct explanation of A
  3. (C)A is correct but R is incorrect
  4. (D)A is incorrect but R is correct

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

Can net profit ever be more than gross profit?

Hint 2

Think of a firm with large non-operating income.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. The Reason correctly describes how net profit is reached from gross profit.

  2. Because indirect incomes are added, net profit can exceed gross profit when other income is large, so the Assertion ("always higher") is false. Option (D).

    1 mark

Answer: (D) A is incorrect but R is correct

Where the marks are

  • Recognises that indirect incomes can make NP exceed GP (1 mark)

Revise the chapter

  • Chapter: Accounting Ratios (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Accounting Ratios, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.