Question : Which of the following statements are false with respect of Net profit ratio?

Option 1: Net Profit Ratio establishes the relationship between Net Profit and Revenue from Operations, i.e., Net Sales.

Option 2: Net Profit Ratio is an indicator of overall efficiency of the business. Higher the Net Profit Ratio, better the business.

Option 3: An increase in the ratio over the previous period shows improvement in the operational efficiency and decline means otherwise.

Option 4: None of the above.

Question : _____________ratio establishes a relationship between gross profit and Revenue from Operations, i.e. Net Sales.

Option 1: Net profit ratio

Option 2: Operating profit ratio

Option 3: Gross profit ratio

Option 4: None of the above

Question : _____________ratio establishes a relationship between gross profit and Revenue from Operations, i.e. Net Sales.

Option 1: Net profit ratio

Option 2: Operating profit ratio

Option 3: Gross profit ratio

Option 4: None of the above

Question : ___________measures the relationship between Operating Profit and Revenue from Operations, i.e., Net Sales.

Option 1: Operating profit ratio

Option 2: Operating ratio

Option 3: Net profit ratio

Option 4: Gross profit ratio

Question : ___________measures the relationship between Operating Profit and Revenue from Operations, i.e., Net Sales.

Option 1: Operating profit ratio

Option 2: Operating ratio

Option 3: Net profit ratio

Option 4: Gross profit ratio