Grade 12 Quiz 1 Term 2

What does capital employed mean?

• It means how much the business is worth

• It means how much the business is sold to customers

• It means how much the business has bought off their suppliers

• It means how much the business can be expanded

How do you calculate Net Profit?

• Gross Profit plus Expenses

• Sales minus Expenses

• Cost of Goods sold minus Expenses

• Gross Profit minus Expenses

How do you calculate cost of goods sold?

• closing stock plus purchases minus opening stock

• closing stock minus purchases plus opening stock

• opening stock minus purchases plus closing stock

• opening stock plus purchases minus closing stock

How do you calculate working capital?

• Current Assets minus Current Liabilities

• Current Liabilities minus Current Assets

• Current Assets plus Current Liabilities

• Current Liabilities plus Current Assets

What is an asset?

• Something you owe - like a bill

• Someone you own - like a car

• Something you need to buy in the future

• Something you want to buy

What are financial ratios?

• Measuring financial performance of a supplier

• Measuring financial performance of a stock company

• Measuring financial performance of a business

• Measuring financial performance of a customer

How do you calculate gross profit?

• Sales plus Cost of Goods Sold

• Sales minus Cost of Goods Sold

• Cost of Goods Sold minus Sales

• Sales minus Closing Stock

What is the formula for the current ratio?

• Total Current Assets divided by Total Current Liabilities

• Total Current Liabilities divided by Total Current Assets

• Total Current Assets divided by Total Working Capital

• Total Current Liabilities divided by Capital Employed

What is the formula for Net Profit Percentage?

• Net Profit divided by Credit Sales x100

• Net Profit divided by Turnover x 100

• Net Profit divided by expenses x 100

• Net Profit divided by capital employed x 100

What is the formula for capital employed?

• Gross Profit divided by Capital Employed x 100

• Capital - drawings + retained earnings

• Net Profit divided by Credit Sales x 100

• Retained earnings+Capital-drawings