Advertisements
Advertisements
Question
As on 31.02.2024, the following information of Bartan Manfacturing Ltd. is available.
| Net profit ratio | 40% |
| Operating profit ratio | 50% |
On 1st April 2024, it was came to notice that the accountant had omitted recording the interest received on investment of Rs. 2,00,000 for the financial year 2023-24. The required rectification was done. What will be the effect of the same on Net Profit and operating profit ratio?
Options
Net Profit ratio will increase and Operating Profit ratio will decrease.
Both Net Profit ratio and Operating Profit ratio will increase.
Net Profit ratio will increase and Operating Profit ratio will have no change.
Net Profit ratio will remain same and Operating Profit ratio will increase.
MCQ
Solution
Net Profit ratio will increase and Operating Profit ratio will have no change.
shaalaa.com
Is there an error in this question or solution?
