While calculating Gross Profit ratio, closing stock is _____________.

deducted from cost of goods sold

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added to cost of goods sold

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ignored

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None of these

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Solution

The correct option is A
deducted from cost of goods sold

While calculating Gross Profit ratio, closing stock is deducted from cost of goods sold.

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Similar questions

Determine stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales.

Q. 'Agrawal Brothers' provide following data:

	Rs
Total Sales	$2, 20, 000$
S/R	$20, 000$
Gross Profit	$50, 000$
Closing Stock	$60, 000$

Excess of closing stock over opening stock = Rs.

20, 000

. What is the 'Stock Turnover ratio'?

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