Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Total Revenue from Operations Rs15,00,000; Cost of Revenue from Operations Rs9,00,000 and Operating Expenses Rs2,25,000. Calculate operating ratio.

Options:

75%

25%

60%

15%

Correct Answer:

75%

Explanation:

Operating Ratio = (Cost of Revenue from Operations + Operating Expenses)/ Net Revenue from Operations ×100
         = (9,00,000+2,25,000)/15,00,000*100
         = 1125000/1500000 X 100
         = 0.75 X 100
         = 75%