Calculate the net profit ratio from the

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Calculate the net profit ratio from the following information-
Net profit= ₹420000
Revenue from operations = ₹2000000

Options:

20%

21%

22%

24%

Correct Answer:

21%

Explanation:

Net Profit Ratio = Net profit/Revenue from Operations × 100
= (420000/ 2000000) X 100
= 21%