F4 Accounting ch7 supp ex

What is the gross profit ratio of an item that costs $300 and is sold for $450?

• 33.33%

• 66.67%

• 50%

• 100%

• 1.24:1

• 0.47:1

• 0.63:1

• 2.51:1

• 1.1:1

• 0.84:1

• 0.69:1

• 0.61:1

A trading firm purchases goods costing $5,000 by cheque. What is the effect on the firm’s current ratio?

• The current ratio increases.

• The current ratio decreases.

• The current ratio remains the same.

• Cannot be determined with the information given.

The acid test ratio of a business may increase as a result of

• a decrease in cash.

• an increase in inventory.

• an increase in bank loans.

• a decrease in trade payables.

• $270,000

• $291,000

• $390,000

• $298,000

The following data were extracted from the books of Mandy’s business for the month of June 2018:

Gross profit for the month = $22,000

Expenses for the month = $8,000

Net profit for the month = 10% of monthly sales

The firm’s cost of sales for June 2013 was

• $152,000

• $153,000

• $118,000

• $100,000

• $900

• $57,200

• $7,500

• $7,200

A business had working capital of $32,000 on 31 January 2019. On 2 February 2019, trade debtors paid $3,600 in full settlement of debts totaling $4,400. What was the working capital on 2 February 2019?

• $39,200

• $40,000

• $24,000

• $31,200

  
  

The net profit ratio is a better measure of profitability than the gross profit ratio because __________ are deducted before arriving at the net profit figure.

• the cost of goods bought and packaging costs

• all purchasing costs and carriage inwards

• all costs and expenses

• all returns inwards and returns outwards