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Commerce · Q2005

Accounting

Graduate and Post Graduate · Commerce · question 2005

Q2005

Given below are two statements, one labelled as Assertion (A) and the other as Reason (R) Assertion (A): Gross profit ratio is calculated on the basis of net sales. Reason (R): Gross profit ratio measure overall profitability of a concern. Choose the correct answer:

A.
Both (A) and (R) are true and (R) is correct explanation of (A)
B.
Both (A) and (R) are true but (R) is not be correct explanation of (A)
C.
(A) is true but (R) is false
Answer
D.
(A) is false but (R) is true

Answer: Option C

Solution

Answer: Option C
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