Operating Profit Ratio of XYZ Ltd. is 60

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Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Accounting Ratios

Question:

Operating Profit Ratio of XYZ Ltd. is 60%. The operating ratio of XYZ Ltd. is:

Options:

30%

60%

100%

40%

Correct Answer:

40%

Explanation:

The correct answer is option 4- 40%.

Operating Profit Ratio = 100 – Operating Ratio
60 = 100 - operating ratio
Operating ratio = 100- 60
= 40%