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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for calculating the Net Profit Ratio?
💡 Hint: Think about what net profit and net sales represent.
Question 2
Easy
If net profit is ₹25,000 and net sales are ₹1,00,000, what is the Net Profit Ratio?
💡 Hint: Use the formula provided.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is the formula for Net Profit Ratio?
- Net Profit/Sales x 100
- Net Sales/Net Profit x 100
- Net Profit + Gross Profit
💡 Hint: Remember the terms 'Net Profit' and 'Sales' in the formula!
Question 2
True or False: A higher Net Profit Ratio always indicates a more successful company.
- True
- False
💡 Hint: Consider aspects like market trends and industry comparison.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company reports a net profit of ₹10,000 with net sales of ₹2,00,000 over the year. Calculate their Net Profit Ratio and discuss its implications.
💡 Hint: Reflect on how margins affect perceptions of business health.
Question 2
Consider two companies: A with a Net Profit Ratio of 40% and B with 10%. Discuss what each company might do to improve their ratios.
💡 Hint: What strategies might lead to increased profitability for low margins?
Challenge and get performance evaluation