Practicing Success

Target Exam

CUET

Subject

Accountancy

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:

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