Question : Which of the following statements is true?
Option 1: Net Profit after tax means Net Profit after interest and tax
Option 2: Net Profit after tax means Net Profit after interest and before tax
Option 3: Net Profit after tax means Net Profit before interest and after tax
Option 4: Net Profit after tax means Net Profit before interest and before tax
Correct Answer: Net Profit after tax means Net Profit after interest and tax
Solution : Answer -Net Profit after tax means Net Profit after interest and tax
NP After Tax mean = Net profit after interest on long-term loans and Taxes.
Net profit after tax refers to the earnings of a business after all income taxes have been deducted. It represents the final amount of profit generated by an organization, incorporating both operating income and income from other sources like interest income. Hence, the correct option is 1.
Question : Which of the following statements is not correct?
Option 1: Net Profit before Interest and Tax = Net Profit before Tax + Interest on Long-term Borrowings
Option 2: Current Liabilities = Total Debt - Non-current Liabilities
Option 3: Capital Employed = Net Fixed Assets + Trade Investments - Working Capital
Option 4: Accumulated Depreciation is already adjusted in Net Fixed Assets.
Question : Interim dividend is added to determine_____________.
Option 1: Net profit before tax and extraordinary items
Option 2: Net profit after tax and extraordinary items
Option 3: Operating profit before change in working capital
Option 4: None of the above
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