Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Accounting Ratios

Question:

Total Revenue from Operations ₹15,00,000; Cost of Revenue from Operations ₹9,00,000 and Operating Expenses ₹2,25,000. Calculate operating ratio.

Options:

75%

25%

60%

15%

Correct Answer:

75%

Explanation:

The correct answer is option 1- 75%.

Operating Ratio = (Cost of Revenue from Operations + Operating Expenses)/ Net Revenue from Operations ×100
         = (9,00,000 + 2,25,000)/15,00,000*100
         = 11,25,000/15,00,000 X 100
         = 75%