alleryIf Net Profit is Rs 50,000 on Sales of Rs 5,00,000, Net Profit Ratio is
A1%
B10%
C5%
D25%
Answer & Solution
Correct answer: B. 10%
1. Net Profit Ratio = (Net Profit / Sales) × 100.
2. = (50,000 / 5,00,000) × 100 = 10%.
3. It measures the percentage of every rupee of sales that becomes profit after all expenses.
4. Hence (C) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 9 "Analysis of Financial Statements", §9.3 ¶§9.3_
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