Day: September 29, 2022

A company has the following gross profit and net profit ratios for two years.

• gross profit % = year 1 – 26% & year 2 – 29%
• net profit % = year 1 – 13% & year 2 – 10%

The company’s turnover has remained unchanged for both years.

What is a correct interpretation of these ratios?

Select ONE answer:

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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