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If the profit-sharing ratio is two to two, what is its simplest form?

Answer and explanation

Correct answer: One to one

To simplify a ratio divide both terms by their highest common factor (HCF/GCD). The HCF of 2 and 2 is 2, so (2÷2):(2÷2)=1:1. Therefore the simplest form is one to one. The closest distractor C (four to two) reduces to 2:1, not 1:1, so it is incorrect. Exam tip: always divide both terms by their HCF (GCD) to get the simplest ratio.

Related tags

Ratio SimplificationEqual SharingHcfGcdPartnership AccountsProfit DistributionPartnership Accounts Basic ConceptsAccountancy

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