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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): A high operating ratio indicates a favourable position.
Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.
- a)Both (A) and (R) are incorrect
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).
Correct answer is option 'A'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A) ...
(A): A high operating ratio indicates a favorable position.
- In finance, the Operating ratio is a company's operating expenses as a percentage of revenue.
- This financial ratio is most commonly used for industries that require a large percentage of revenues to maintain operations, such as railroads. In railroading, an operating ratio of 80 or lower is considered desirable.
- Operating Ratio refers to a metric used by a company to determine how efficient a company’s management is at keeping operating costs low while at the same time generating revenues or sales, by comparing the total operating expenses of a company to that of its net sales.
- A higher ratio would indicate that expenses are more than the company’s ability to generate sufficient revenue and may be considered inefficient.
- Similarly, a relatively low ratio would be considered a good sign as the company’s expenses are less than that of its revenue.
(R): A high operating ratio leaves a high margin to meet non-operating expenses.
- Operating Ratio = (Operating Expenses / Net Sales) * 100.
- A low operating ratio means a high net profit ratio (i.e., more operating profit) and vice versa.
- It shows whether or not the cost component in the sales figure is within the normal range.
- A high operating ratio leaves less margin to meet non-operating expenses.
- The operating ratio is used to measure the operational efficiency of the management.
Hence Both Assertion And Reason Are Incorrect.
Most Upvoted Answer
Directions : In the following questions, a statement of Assertion (A) ...
Option (b) is the right answer as both the statements are true but the reason is no way related to the assertion of the given question
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer?.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer?.
Solutions for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A):A high operating ratio indicates a favourable position.Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.a)Both (A) and (R) are incorrectb)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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