Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Accounting Ratios

Question:

Calculate the operating profit ratio from the following information-

Sales ₹20,00,000
Gross profit ratio 30%
Operating ratio 80%
Non-operating expenses ₹30,000
Non-operating income ₹50,000

 

Options:

10%

20%

30%

40%

Correct Answer:

20%

Explanation:

The correct answer is option 2- 20%.

Operating Profit Ratio = 100 – Operating Ratio
                                   = 100 - 80
                                   = 20%