Question : The Gross Profit Ratio of a company is 25%. Which of the following transactions will increase;
Option 1: Purchase of Stock-in-Trade Rs. 50,000.
Option 2: Purchases Return Rs. 15,000 .
Option 3: Revenue from Operations on sale of Stock-in-Trade Rs. 85,000 .
Option 4: None of the above
Correct Answer: None of the above
Solution : Answer = None of the above
Because in all cases there will be no effect on the Gross profit ratio. Hence, the correct option is 4.
Question : The Operating Profit Ratio of a company is 20%. State, giving reason, which of the following transactions will not alter the Operating Profit Ratio.
Option 2: Purchases Return Rs. 10,000 .
Option 3: Revenue from Operations on sale of Stock-in-Trade Rs. 60,000
Option 4: All of the above
Question : The Gross Profit Ratio of a Company is 20%. Which of the following transactions will not change in gross profit ratio?
Option 1: Goods costing Rs. 1,50,000 sold for Rs. 2,00,000.
Option 2: Goods costing Rs. 3,40,000 sold for Rs. 4,00,000.
Option 3: Revenue from Operations Rs. 2,00,000.
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