Accounting Ratios Class XII

Two basic measures of liquidity are :

• (A) Inventory turnover and Current ratio

• (B) Current ratio and Quick ratio

• (C) Gross Profit ratio and Operating ratio

• (D) Current ratio and Average Collection period

Which of the following is not operating expenses?

• (A) Office Expenses

• (B) Selling Expenses

• (C) Bad Debts

• (D) Loss by Fire

Revenue from Operations ₹6,00,000; Gross Profit 20%; Office Expenses ₹30,000; Selling Expenses? ₹48,000. Calculate operating ratio

• (A) 80%

• (B) 85%

• (C) 96.33%

• (D) 93%

4. Purchases ₹7,20,000; Office Expenses ₹30,000; Selling Expenses ₹90,000; Opening Inventory ₹1,40,000; Closing Inventory ₹80,000; Revenue from Operations ₹12,00,000. Calculate operating ratio

• (A) 60%

• (B) 75%

• (C) 70%

• (D) 65%

Total Revenue from Operations ₹15,00,000; Cost of Revenue from Operations ₹9,00,000 and Operating Expenses ₹2,25,000. Calculate operating ratio :

• (A) 75%

• (B) 25%

• (C) 60%

• (D) 15%

Cost of Revenue from Operations =

• (A) Revenue from Operations – Net Profit

• (B) Revenue from Operations – Gross Profit

• (C) Revenue from Operations – Closing Inventory

• (D) Purchases – Closing Inventory

Revenue from operations is ₹1,80,000; Rate of Gross Profit is 25% on cost. What will be the Gross Profit?

• (A) ₹45,000

• (B) ₹36,000

• (C) ₹40,000

• (D) ₹60,000

Operating ratio is :

• (A) Cost of revenue from operations + Selling Expenses/Net revenue from operations

• (B) Cost of production + Operating Expenses/Net revenue from operations

• (C) Cost of revenue from operations + Operating Expenses/Net Revenue from Operations

• (D) Cost of Production/Net revenue from operations.

What will be the amount of Gross Profit, if revenue from operations are ₹6,00,000 and Gross Profit Ratio 20% of revenue from operations?

• (A) ₹1,50,000

• (B) ₹1,00,000

• (C) ₹1,20,000

• (D) ₹5,00,000

What will be the amount of Gross Profit. if revenue from operations are ₹6,00,000 and Gross . Profit Ratio is 20% of cost?

• (A) ₹1,50,000

• (B) ₹1,00,000

• (C) ₹1,20,000

• (D) ₹5,00,000