Assertion (A): Inspite of a higher operating ratio the profitability tends to be lower.Reason (R): Operating ratio shows a relationship between net operating profit and net sales.Now, select the correct answer:

Select the correct answer of the Assertion (A) and Reason (R).
Assertion (A) Companies should measure the profitability of their products,. territories, customer groups, segments, trade channels and order sizes.
Reason (R) Measure of profitability helps companies determine whether to expand, reduce or eliminate any product or marketing activities to ensure profitability control.

A

Both (A) and (R) are correct and (R) is the right explanation of (A)

B

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

C

(A) is correct, but (R) is incorrect

D

(R) is correct, but (A) is incorrect

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

D

(A) is false but (R) is true

In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives. Job performance is ______ by a number of factors. Motivation alone does not lead to increased performance. Ability and technology moderates the relationship between motivation and performance. The higher the levels of ability and motivation the ______ the level of performance will be. However, increasing motivation beyond an ______ level tends to ______ a dysfunctional result because it is ______ by an increased level of anxiety. tends to ______ a dysfunctional result

A

deduce

B

\introduce

C

produce

D

reduce

Assertion (A) A firm's relative position within its industry determines whether the firm's overall profitability is above or below the industry average.
Reason (R) The fundamental basis of average profitability in the long run is sustainable competitive advantage.

A

(A) and (R) both are correct and (R) is the right explanation of A

B

(A) and (R) both are correct, but (R) is not the right explanation of (A)

C

(A) is correct, but (R) is incorrect

D

(R) is correct, but (A) is incorrect

In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the fouralternatives.
Job performance is ______ by a number of factors. Motivation alone does not lead to increased performance. Ability and technology moderates the relationship
between motivation and performance. The higher the levels of ability and motivation the ______ the level of performance will be. However, increasing motivation
beyond an ______ level tends to ______ a dysfunctional result because it is ______ by an increased level of anxiety.
motivation and performance. The higher the levels of ability and motivation the ______ the level of performance will be.

A

higher

B

larger

C

lower

D

smaller

To measure the profitability of a business, among the following which ratio will be used?
i. Acid test ratio
ii. Return on capital employed
iii. Net profit ratio
iv. Interest protection ratio
v. Stock periodic ratio
6. Debt equity ratio

A

Only iii

B

i and iii

C

ii and iii

D

i, ii, iii and iv

S₁: You might say that all through history there have been wars and that mankind has survive inspite of them.
P: Now, if his purposes are those of destruction, each fresh advance in his mastery of nature only increases the danger from war, as men learn to destroy one another in ever great numbers, from ever great distances, and in ever more varied and ingenious ways.
Q: He has learned to tap the hidden forces of our planet and use them for his purpose.
R: It has even developed and become civilised inspite of them.
S: This is true, but unfortunately as part of his development man has enormously increased his power over nature.
S₆: Man has now discovered how to release the colossal forces locked up in the atom.

The Proper sequence should be:

A

PQSR

B

PRQS

C

QPRS

D

RSQP

X and Y are partners in a firm. X is entitled to a salary of Rs. 2,000 per month together with a commission of 10% of net profit before chargin any commission. Y is entitled to a salary of Rs. 5000 per annum together with a commission of 10% of net profit after charging all commissions. Net profit before charging any commission for the year was Rs. 55,000. What will be the net profits to be distributed to X and Y respectively?

A

Rs. 20,000 and Rs. 2,30,000

B

Rs. 2,15,000 and Rs. 23,500

C

Rs. 22,000 and Rs. 22,500

D

Rs. 22,350 and Rs. 22,450

E

Rs. 22,500 and Rs. 22,500

Direction-The question have two statements.
One is labelled as Assertion (A) and the other as Reason (R). You have to examine both the statements carefully and decide whether Assertion (A) and Reason (R) separately are true and if so then reason is the correct explanation of the assertion. Mark these items on the answer sheet.
Assertion (A): Interest payable on working capital should be treated as an item of operating expenses.
Reason (R): Interest is the cost of capital used in the business.

A

Both A and R are correct and R is the correct explanation of A

B

Both A and R are correct and R is not the correct explanation of A

C

A is correct but R is wrong

D

A is wrong but R is correct

Assertion (A): When there is an evidence of a linear relationship between two variables, it may not always mean an independent-dependent relationship between the two variables.
Reason (R): The casual relationship between the two variables may not imply a reasonable theoretical relationship between the two.

A

Both (A) and (R) are true and (R) is the correct explanation of (A)

B

Both (A) and (R) are true, but (R) is not the correct explanation of (A)

C

(A) is true, but (R) is false

D

(A) is false, but (R) is true

Assertion (A): Inspite of a higher operating ratio the profitability tends to be lower.
Reason (R): Operating ratio shows a relationship between net operating profit and net sales.
Now, select the correct answer:

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