[amp_mcq option1=”20%” option2=”50%” option3=”10%” option4=”40%” correct=”option3″]<\/p>\n
The correct answer is C. 10%.<\/p>\n
Net profit ratio is a measure of a company’s profitability. It is calculated by dividing net profit by net sales. Net profit is equal to gross profit minus expenses. Gross profit is equal to sales minus cost of goods sold.<\/p>\n
In this case, the firm has a net profit of Rs. 1,00,000, net sales of Rs. 5,00,000, and a gross profit of Rs. 2,00,000. Therefore, the net profit ratio is 10%.<\/p>\n
Option A is incorrect because it is the gross profit ratio. Gross profit ratio is calculated by dividing gross profit by net sales. In this case, the gross profit ratio is 40%.<\/p>\n
Option B is incorrect because it is the profit margin. Profit margin is calculated by dividing net profit by sales. In this case, the profit margin is 20%.<\/p>\n
Option D is incorrect because it is the return on assets. Return on assets is calculated by dividing net profit by average total assets. In this case, the return on assets is 10%.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”20%” option2=”50%” option3=”10%” option4=”40%” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-59471","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n