English

Particulars ₹ Net Revenue from Operations 20,00,000 Credit Revenue from Operations 10,00,000 Gross Profit 6,00,000 Office Expenses 2,00,000 Selling Expenses 1,00,000 Loss by Fire 2,00,000 - Accounts

Advertisements
Advertisements

Question

Particulars
Net Revenue from Operations 20,00,000
Credit Revenue from Operations 10,00,000
Gross Profit 6,00,000
Office Expenses 2,00,000
Selling Expenses 1,00,000
Loss by Fire 2,00,000

Operating Ratio will be:

Options

  • 70%

  • 85%

  • 90%

  • 95%

MCQ
Advertisements

Solution

85%

Explanation:

Cost of Revenue from Operations = Net Revenue from Operations − Gross Profit

= 20,00,000 − 6,00,000

= ₹ 14,00,000 

Operating Expenses = Office Expenses + Selling Expenses

= 2,00,000 + 1,00,000

= ₹ 3,00,000

Operating Ratio = `("Cost of Revenue from Operations" + "Operating Expenses")/"Net Revenue from Operations" xx 100`

Operating Ratio = `(14,00,000 + 3,00,000)/(20,00,000) xx 100`

= `(17,00,000)/(20,00,000) xx 100`

= 85%

shaalaa.com
  Is there an error in this question or solution?
Chapter 14: Ratio Analysis - OBJECTIVE TYPE QUESTIONS [Page 14.174]

APPEARS IN

D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 14 Ratio Analysis
OBJECTIVE TYPE QUESTIONS | Q 6. | Page 14.174
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×