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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for the Net Profit Ratio?
💡 Hint: Remember, it reflects the profit margin relative to sales.
Question 2
Easy
Define Gross Profit Ratio.
💡 Hint: Think about what profit remains after covering production costs.
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 does the Gross Profit Ratio measure?
- Efficiency in production
- Total revenue
- Investment returns
💡 Hint: Think about what comes after production costs from sales.
Question 2
True or False: A higher Net Profit Ratio is better.
- True
- False
💡 Hint: Consider how much profit you keep from sales.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Calculate the Gross Profit Ratio for a company that reported Gross Profit of ₹120,000 and Net Sales of ₹500,000, discussing its implications.
💡 Hint: Focus on how much is left after costs when assessing profitability.
Question 2
A business has an Operating Ratio of 85%. Analyze what this might mean for stakeholders and what actions could be taken.
💡 Hint: Think about where costs could be optimized.
Challenge and get performance evaluation