Operating Profit Ratio

Q.

Loss by fire, loss by theft etc are ___

1. Operating expenses

2. Non operating expenses

3. Financial expenses

4. All of these

Q.

From the following, calculate the Gross Profit ratio and Working Capital Turnover Ratio.

Revenue from operations Rs 30, 00, 000

Cost of Revenue from operation Rs 20, 00, 000

Current Assets Rs 6, 00, 000

Current Liabilities Rs 2, 00, 000

Paid up share capital Rs 5, 00, 000

Q.

Administrative and office expenses and selling and distribution expenses are ___

1. Operating expenses

2. Non operating expenses

3. Financial expenses

4. All of these

Q.

What will be the operating profit ratio, if operating ratio is 88.94%?

1. 83.64%

2. 16.36%

3. None of the above

4. 11.06%

Q.

Calculate Working Capital Turnover Ratio from the following information :

$\begin{array}{cc}& \text{Rs.}\\ \text{Current Assets}& 1,80,000\\ \text{Current Liabilities}& 30,000\\ \text{Cost of Revenue from Operations}& 10,00,000\\ \text{Gross Profit}& \text{20\% of Cost}\end{array}$

Q. What will be the Operating Profit Ratio, if Operating Ratio is 82.59%?

Q.

___ = 100% - Operating ratio

1. Operating ratio

2. Net worth ratio

3. Operating profit ratio

4. None of these

Q.

Non operating incomes are __________ while calculating operating profit from net profit.

1. Added

2. Deducted

3. ignored

4. None of these

Q.

Net operating profit ratio determines___

1. Overall efficiency of the management

2. Overall efficiency of the external market

3. None of these

4. Overall efficiency of the business

Q.

From the following information, calculate Operating Ratio and Quick Ratio.

Revenue from operations Rs 3, 00, 000; Opening Inventory Rs 10, 000; Purchases Rs 1, 20, 000; Wages Rs 30, 000 ; Closing Inventory Rs 30, 000; Selling and Distribution Expenses Rs 10, 000; Currnet Assets Rs 2, 00, 000 and Current Liabilities Rs 1, 20, 000.

Q.

A company issued 50, 000 shares of par value Rs. 10 each. If the total dividend declared by the company is Rs. 62, 500, find the rate of dividend paid by the company.

Q.

What will be the operating profit ratio, if operating ratio is 83.64%?

1. 11.06%

2. 83.64%

3. 16.36%

4. None of these

Q.

The capitals of two partners in a business are $₹30,000$ and $₹45,000$ $.$The net profit after deducting expenses is $₹12,000$ $.$Find the profit of each partner in the ratio of capital invested by them$.$

Q.

___ is the ratio of cost of goods sold plus operating expenses to net sales.

1. Operating ratio

2. Net worth ratio

3. None of these

4. Net worth ratio

Q.

Cost of goods sold plus operating expenses = __________.

1. Gross profit margin

2. Working capital

3. Operating cost

4. All of these

Q. Operating ratio + Operating profits ratio is always is equal to .

1. 1
2. 10%
3. 10
4. 100%

Q.

Operating profit ratio is calculated by___

1. $\frac{\text{Operating Profit}}{\text{Gross sales}}\times 100$

2. $\frac{\text{Gross Profit}}{\text{Net Sales}}\times 100$

3. $\frac{\text{Operating Profit}}{\text{Net Sales}}\times 100$

4. None of these

Q.

Non operating expenses are ___ while calculating operating profit from Net profit.

1. Added

2. Deducted

3. ignored

4. None of these

Q. During the year $2014-2015$, the profit of a business before charging Sales Manager's commission was Rs. $1,89,000$. If the Sales Manager's commission is $5\%$ on profit after charging his commission, then the total amount of commission payable to manager is?

1. Rs. $10,000$
2. Rs. $9,450$
3. Rs. $9,000$
4. Rs. $8,500$

Q.

From the following, calculate operating profit ratio:

Operating cost is Rs. 1, 75, 000 and Revenue from Operations is Rs. 3, 85, 000.

1. 56.81%

2. 54.55%

3. 45.45%

4. 58.54%

Q. Goods costing Rs.10, 000 destroyed by fire should be credited to

1. Sales Account
2. Cash Account
3. Purchase Account
4. Goods Lost by Fire A/c

Q. Operating profit is calculated as:
Net profit + Non operating incomes - Non operating Expenses.

1. True
2. False

Q. Net salvage value of fixed assets is equal to __________________.

1. Excess of book value over salvage value
2. Excess of salvage value over book value
3. Working capital requirement in the first year
4. Scrap value
5. Salvage value of fixed assets less any income tax payable on the excess of salvage value over book value

Q. A man purchases two articles, on selling one at loss of 20% while the other at a profit of 25%, he gains the overall profit of 5% than find the ratio of their selling price ?

Q. Operating profit ratio is defined as the ratio of to revenue from operations.

1. operating profit
2. net profit
3. gross profit
4. total profit

Q. From the following information calculate net profit:

	Rs.
Opening stock	$15,00,000$
Direct expenses	$3,00,000$
Selling & distribution expenses	$2,00,000$
Administrative expenses	$1,00,000$
Financial expenses	$50,000$
Sales	$24,00,000$
Gross profit ratio on sales	$25\%$

1. $2,50,000$
2. $3,50,000$
3. $2,00,000$
4. $1,50,000$

Q. Any donation received for a specific purpose is an ________.

1. Liability
2. Assets
3. Revenue receipts
4. Capital receipts

Q.

A bicycle is available for Rs. 7, 280 including GST. If the list price of the bicycle is Rs. 6, 500, find:
(i) the rate of GST.

(ii) the price, a customer will pay for the bicycle if the GST is increased by 6%.

Q. expenses are those expenses which are related to the operations of a firm but not directly adding any value to the product.

1. Other operating
2. Operating
3. Non-operating
4. Indirect

Q. Loss on sale of asset is ____________ while calculating operating profit from net profit.

1. added
2. ignored
3. deducted
4. none