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Standard XII
Accountancy
Net Profit Ratio
What does net...
Question

What does net profit ratio signify?

A
Operational profitability
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B
Liquidity position
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C
Solvency
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D
Profit
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Solution

The correct option is A Operational profitability
The net profit ratio signifies remaining profit after all costs of production, administration & financing have been deducted from sales,and income taxes recognized.

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