Financial Statements

Ratios

Easy

Financial Statements

Given the following information:

Revenue from Operations Rs. 3,40,000

Cost of Revenue from Operations Rs. 1,20,000

Selling expenses Rs. 80,000

Administrative Expenses Rs. 40,000

Calculate the operating ratio.

70.59%

35.29%

58.82%

47.06%

✅ Correct Option: 1

Operating Ratio $= \frac{\text{Cost of Revenue from Operations} + \text{Operating Expenses}}{\text{Revenue from Operations}} \times 100 = \frac{1,20,000 + 80,000 + 40,000}{3,40,000} \times 100 = \frac{2,40,000}{3,40,000} \times 100 = 70.59\%$ .

2025: 14 May Shift 2

Return on Investment is

2022: 8 Aug Shift 2

What is Gross Profit Ratio if?

Total sales Rs. 6,00,000

Sales returns Rs. 50,000

Cost of goods sold Rs. 4,40,000

2026: 29 May Shift 1

Match List-I with List-II

List-I (Accounting Ratio)	List-II (Objectives/ Use of Accounting Ratio)
(A) Liquidity Ratio	(I) To know the earning capacity of the business
(B) Profitability Ratio	(II) To know the ability to pay long-term obligations
(C) Solvency Ratio	(III) To know the efficiency of business operations
(D) Activity Ratio	(IV) To know the ability to pay short-term obligations

Choose the correct answer from the options given below:

2022: 8 Aug Shift 2

Long-term solvency is indicated by:

2025: 13 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Liquidity Ratio	(I) Inventory Turnover ratio
(B) Solvency Ratio	(II) Quick Ratio
(C) Activity (or Turnover) Ratio	(III) Price earning ratio
(D) Profitability Ratio	(IV) Total asset to debt ratio

Choose the correct answer from the options given below:

2022: 20 Aug Shift 2

X Ltd. has a Current Ration of 3.5 : 1 and Quick Ratio of 2 : 1. If excess of current assets over quick assets represented by inventories is Rs. 24,000. Calculate current liabilities.

Given the following information: Revenue from Operations Rs. 3,40,000 Cost of Revenue from Operations Rs. 1,20,000 Selling expenses Rs. 80,000 Administrative Expenses Rs. 40,000 Calculate the operating ratio.

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)

Given the following information:

Revenue from Operations Rs. 3,40,000

Cost of Revenue from Operations Rs. 1,20,000

Selling expenses Rs. 80,000

Administrative Expenses Rs. 40,000

Calculate the operating ratio.