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What is the difference between ‘Operating Profit’ and ‘Net Profit’?

Post category:Accountancy
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SOLUTION

Operating profit is arrived at after deducting only operating expenses from gross profit whereas net profit is arrived at after deducting all operating as well as non-operating expenses from gross profit.

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Previous PostThe gross profit ratio of a company is 50%. Slate with reason whether the decrease in rent received by Rs. 15,000 will increase, decrease or not change the ratio.

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Name any two items which are shown on the debit of Profit and Loss Appropriation Account.

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