When the ratio is low, the firm is said to have favourable indication. Option 1: Inventory turnover ratio Option 2: Operating profit ratio Option 3: Debtors turnover ratio Option 4: Operating ratio

The answer is 'Operating ratio'. View full solution:

CUET Accountancy - When the ratio is low, the firm is said to have favourable indication. | PYQs + Solutions

CUET Accountancy 2022 8 Aug Shift 2

Financial Statements

Medium

Inventory turnover ratio

Operating profit ratio

Debtors turnover ratio

Operating ratio

✅ Correct Option: 4

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