{"id":8651,"date":"2024-04-15T03:04:01","date_gmt":"2024-04-15T03:04:01","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=8651"},"modified":"2024-04-15T03:04:01","modified_gmt":"2024-04-15T03:04:01","slug":"pick-up-the-correct-statement-from-the-following-a-the-ratios-which-show-profitability-in-relation-to-sales-and-those-which-show-profitability-in-relation-to-investment-are-called-profitability-rati","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/pick-up-the-correct-statement-from-the-following-a-the-ratios-which-show-profitability-in-relation-to-sales-and-those-which-show-profitability-in-relation-to-investment-are-called-profitability-rati\/","title":{"rendered":"Pick up the correct statement from the following: A. The ratios which show profitability in relation to sales and those which show profitability in relation to investment are called profitability ratios B. The ratio of gross profit and net sales is called profitability in relation to sales ratio C. The ratio of net profit after taxes to total assets is known as profitability in relation to investment ratio D. All of these"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9b95d4cf17e\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    The ratios which show profitability in relation to sales and those which show profitability in relation to investment are called profitability ratios                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    The ratio of gross profit and net sales is called profitability in relation to sales ratio                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    The ratio of net profit after taxes to total assets is known as profitability in relation to investment ratio                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"true\">\r\n                    All of these                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is D. All of these.<\/p>\n<p>Profitability ratios are a type of financial ratio that measures the profitability of a company. They are used to assess a company&#8217;s ability to generate profits from its operations. There are two main types of profitability ratios: profitability in relation to sales ratios and profitability in relation to investment ratios.<\/p>\n<p>Profitability in relation to sales ratios measure a company&#8217;s ability to generate profits from its sales. The most common profitability in relation to sales ratio is the gross profit margin, which is calculated by dividing gross profit by net sales. Other profitability in relation to sales ratios <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> include the operating profit margin, the net profit margin, and the return on sales.<\/p>\n<p>Profitability in relation to investment ratios measure a company&#8217;s ability to generate profits from its investments. The most common profitability in relation to investment ratio is the return on assets, which is calculated by dividing net income by average total assets. Other profitability in relation to investment ratios include the return on equity and the return on invested capital.<\/p>\n<p>Profitability ratios are important because they provide a measure of a company&#8217;s ability to generate profits. This information can be used to assess a company&#8217;s financial health and to compare its performance to that of other companies in the same industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[656],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pick up the correct statement from the following: A. The ratios which show profitability in relation to sales and those which show profitability in relation to investment are called profitability ratios B. The ratio of gross profit and net sales is called profitability in relation to sales ratio C. 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