Match List-I with List-II.
| LIST 1 (Ratio) |
LIST 2 (Formula) |
| (A) Current Ratio | (I) Market Price of a share/EPS |
| (B) Operating Margin Ratio | (II) Current Assets/Current Liabilities |
| (C) Return on Capital employed | (III) 100 - Operating Ratio |
| (D) Price earning ratio | (IV) Profit before interest and tax/Capital employed X 100 |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
(A) Current ratio — this matches (II) Current Assets/Current Liabilities. It measures how far current assets cover current liabilities.
(B) Operating Margin Ratio — this matches (III) 100 − Operating Ratio. Operating profit is what remains of revenue after operating cost, so the operating profit (margin) ratio is the balance left after the operating ratio.
(C) Return on Capital employed — this matches (IV) Profit before interest and tax/Capital employed × 100. It uses profit before interest and tax because capital employed includes long-term debt as well as equity.
(D) Price earning ratio — this matches (I) Market Price of a share/EPS. It shows how many times its earnings per share the market pays for a share.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition):
|



