Looking at Your Profit and Loss Statement You Note That

question 25

Multiple Choice

Looking at your profit and loss statement you note that you have operating expenses of $10M and operating revenue of $14M, what is your operating ratio?

• A) 140.00
• B) 68.12
• C) 71.41
• D) Not enough information to tell

---

Definitions:

Current Account

A part of the balance of payments of a country, accounting for trade balance, net primary income, and net secondary income transactions with foreign entities.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to price reductions.

Deficit

A financial situation where expenditures exceed revenue, leading to a shortfall that must be financed through borrowing or existing reserves.

Foreign Assets

Investments or properties owned by individuals or entities in countries other than their home country.