12th Class Accountancy Accounting Ratios Question Bank MCQs - Accounting Ratios

  • question_answer
    Revenue from Operations Rs. 9,00,000, Gross Profit 25% on Cost, Operating Expenses Rs. 90,000, Operating Ratio will be:

    A) 100%           

    B) 50%

    C) 90%                

    D) 10%

    Correct Answer: C

    Solution :

    [c] 90%
    Hint: Cost of Revenue from Operations\[=9,00,000\times \frac{100}{125}\]  =Rs. 7,20,000
    Cost of Revenue from Operations
    \[\operatorname{Operating}\,Ratio=\frac{+\,Operating\,Expenses}{Revenue\,from\,\,Operations}\times 100\]
                          =\[\frac{7,20,000\,+\,90,000\,}{9,00,000}\times 100\] =90%


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