Day: August 15, 2023

Accounting Multiple Choice Question – 15 August 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex plc has a gross profit to sales ratio of 40 %, and a net profit to sales ratio of 10 %.

If the sales volume increases by 8 % which of the following will generally be true?

Select ONE answer:

  1. gross profit to sales ratio – Increase AND net profit to sales ratio – Decrease
  2. gross profit to sales ratio – Increase AND net profit to sales ratio – Increase
  3. gross profit to sales ratio – Unchanged AND net profit to sales ratio – Decrease
  4. gross profit to sales ratio – Unchanged AND net profit to sales ratio – Increase

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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