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‘Sale of goods Rs. 3,000 for cash will increase the Gross Profit Ratio.’ Is this statement correct? Give reason in support of your answer. (C.B.S.E. 2020. Kolkata, Lucknow)

SOLUTION

No.
Reason: Sale of goods for cash will not affect the Gross Profit Ratio, as the sales and gross profit will increase by the same percentage.


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