alleryStart learning →Profit percentage, also called markup, takes which base?
- Cost price paid
- Revenue earned
- Net sales made
- Selling price
Show answer and solution
Correct answer: A. Cost price paid
Markup shows profit relative to what was paid for the goods.
CA Inter Financial Ratio — practice questions — page 2
Explore 50 free Financial Ratio questions in CA Inter Financial Management. Open each question or exercise to read its content, reference answers and available explanation.
Practise Financial Ratio with Quill →Financial Ratio questions and exercises with answers
Showing questions 31–50 of 50.
Profit percentage, also called markup, takes which base?Read the answer and worked solution →Which of these is one of the three types of profit margin?Read the answer and worked solution →Gross profit margin is gross profit divided by what?Read the answer and worked solution →Gross profit is found by deducting which item from revenue?Read the answer and worked solution →Operating profit margin divides which profit by revenue?Read the answer and worked solution →A low profit margin indicates what about the business?Read the answer and worked solution →Profit margin is used mostly for which kind of comparison?Read the answer and worked solution →A zero or negative profit margin shows that sales do what?Read the answer and worked solution →A firm has net margin 6%, asset turnover 2.5 times and equity multiplier 2. Its ROE is?Read the answer and worked solution →A firm earns net profit of 90,000 on revenue of 1,500,000. Its net profit margin is?Read the answer and worked solution →Revenue is 800,000 and COGS is 560,000. What is the gross profit margin?Read the answer and worked solution →EBIT is 120,000 on revenue of 1,200,000. What is the operating profit margin?Read the answer and worked solution →An item costing 80 sells for 100. Profit as a percentage of cost is?Read the answer and worked solution →Net income is 63 and pretax profit is 90. What is the tax burden?Read the answer and worked solution →Average total assets are 900 and average equity is 300. The equity multiplier is?Read the answer and worked solution →Revenue is 2,500 and average total assets are 1,000. Asset turnover is?Read the answer and worked solution →EBIT is 36 on revenue of 240. What is the return on sales?Read the answer and worked solution →Tax burden 0.8, interest burden 0.9, ROS 10%, asset turnover 2, equity multiplier 1.5. ROE is?Read the answer and worked solution →Revenue 500,000; COGS 250,000; operating expenses 100,000; tax 25,000. Net profit margin?Read the answer and worked solution →Net income is 50,000, revenue 500,000 and total assets 250,000. What is the ROA?Read the answer and worked solution →
Worked practice questions
Which of these is one of the three types of profit margin?
- Operating profit margin
- Contribution margin
- Variable cost margin
- Debt service margin
Show answer and solution
Correct answer: A. Operating profit margin
The three types are gross, operating and net profit margin.
Gross profit margin is gross profit divided by what?
- Total assets held
- Net sales revenue
- EBIT for the year
- Equity capital
Show answer and solution
Correct answer: B. Net sales revenue
Gross margin states gross profit as a percentage of net sales.
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