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.
Option 4: None of the above

Question

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.

Option 4: None of the above

Team Careers360 · Accepted Answer

Correct Answer: Revenue from Operations Rs. 2,00,000.

Solution : Answer = Revenue from Operations Rs. 2,00,000.

Revenue from the operation will increase but the Closing stock will decrease by the same percentage, not by the same amount. As a Result Cost of Revenue from operation will increase by the same percentage as the Revenue from operation increases.
Hence, the correct option is 3.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Related Questions

Question : The Gross Profit Ratio of a Company is 20%. Which of the following transactions will not change in gross profit ratio?

Given production is 1,00,000 units, fixed costs is Rs 2,00,000 Selling price is Rs 10 per unit and variable cost is Rs 6 per unit. Determine profit using technique of marginal costing

Question : Furniture as on 31st March, 2019—Rs. 4,40,000; Furniture (having book value as on 1st April, 2019—Rs. 40,000) sold at a loss of 20% on 31st December, 2019. Furniture is to be depreciated @ 10% p.a. Furniture costing Rs. 3,00,000 was also purchased on

Question : While purchasing an item costing Rs. 600, Rashi had to pay sales tax at 5%. What amount did Rashi have to pay as sales tax?

6 kg of sugar costing rs.10 per kg is added to 9 kg of sugar costing rs.15 per kg. At what price (in rs) should this mixture be sold so that there is no loss or gain?

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

Question : Furniture as on 31st March, 2019—Rs. 4,40,000; Furniture (having book value as
on 1st April, 2019—Rs. 40,000) sold at a loss of 20% on 31st December, 2019. Furniture is to be depreciated @ 10% p.a. Furniture costing Rs. 3,00,000 was also purchased on