Question
Which of the following formulae correctly calculates the
Operating Profit Margin?Solution
Operating profit is given by EBIT or Earnings before Interest and Taxes. Operating profit margin is a profitability ratio that tells how much profit per unit of sales, a company earns from its operations, before accounting for interest cost and taxes. Operating profit margin = EBIT/Sales
If a firm has 100 in inventories, a current ratio equal to 1.2, and a quick ratio equal to 1.1, what is the firm's Net Working Capital? Â
The Udyam Registration Certificate can be obtained by which types of business entities?
If a company declares dividends after the balance sheet date but before financial statements are approved, AS 4 requires that:Â
A’s acceptance to B for Rs. 5,000 is discharged by a cash payment of Rs.3000 and a new bill is drawn for the balance plus Rs.100 for interest. The am...
X acquired a car on hire purchase basis and made a down payment of Rs. 1,00,000. Subsequent payments to be made are Rs. 2,63,000, Rs. 1,85,000, and Rs. ...
According to the Executive Committee of the General Insurance Council, what is the minimum amount of unexpired risk reserve required for Marine Insurance?
Cost of goods sold will be:
What is the CAPM?
A shipping company is required by law to bring all ships into dry dock every five years for inspection and overhaul. What is the correct treatment for t...
The Audit undertaken to check the implications of the top management decisions, having a financial bearing is otherwise known as:
