Ratio Analysis - Net Profit ratio - MCQs with answers

Ratio Analysis - Net Profit ratio - MCQs with answers

1. Net Profit ratio is calculated by

a) (Gross Profit/Gross sales)*100
b) (Gross Profit/Net sales)*100
c) (Net Profit/Net sales)*100
d) None of the above

View Answer / Hide Answer

2. If sales is Rs 5, 00,000 and net profit is Rs 1, 20,000 Net Profit ratio is

a) 24%
b) 416%
c) 60%
d) None of the above

View Answer / Hide Answer

3. If sales is Rs 10,00,000, sales returns is Rs 50,000, Profit Before Tax is Rs 2,00,000, Income tax is 40%, Net profit ratio is

a) 12.63%
b) 20%
c) 10%
d) 50%

View Answer / Hide Answer

4. Net operating profit ratio determines ___________ while net profit ratio determines

a) Overall efficiency of the business, working efficiency of the management

b) Working efficiency of the management, overll efficiency of the business

c) Overall efficiency of the external market, working efficiency of the internal management

d) None of the above

View Answer / Hide Answer

5. Operating ratio is calculated by

a) (Operating Cost/Gross sales)*100
b) (Operating Cost/Gross sales)*100
c) (Operating cost/Net sales)*100
d) None of the above

View Answer / Hide Answer

6. Determine Operating ratio, if operating expenses is Rs 60,000, Sales is Rs 9,40,000, Sales Return is Rs 40,000 and Cost of net goods sold is Rs 6,60,000.

a) 80%
b) 15%
c) 25%
d) 11%

View Answer / Hide Answer

7. Which of the following is expenses ratio?

A) Administrative expenses ratio
B) Selling and Distribution expenses ratio
C) Factory expenses ratio
D) Finance Expenses ratio

a) A, B and D
b) A, C and D
c) A, B and C
d) A, B , C, D

View Answer / Hide Answer