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

Calculate operating ratio, if Cost of Revenue from Operations Rs. 50,000, Revenue from Operations Rs. 1,50,000 and Operating Expenses Rs. 20,000.

A) 45%

B) 46.7%

C) 48.1%

D) 42.2%

Correct Answer: B

Solution :

[b] 46.7%

Hint: Operating Ratio=\[\frac{Cost of Revenue from Operations\ + Operating Expenses}{Revenue from Operations}\times 100\]

Operating Ratio =\[\frac{50,000+20,000}{1,50,000}\times 100\] =46.7%