Finance review

Finance review

1st - 2nd Grade

14 Qs

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Finance review

Finance review

Assessment

Quiz

Social Studies

1st - 2nd Grade

Practice Problem

Medium

Created by

Leah Cunningham

Used 4+ times

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14 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a ratio for analyzing the performance (profit) of a business?

Acid test ratio

Profit margin

Gross profit margin

Return on capital employed

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a business wanted to check they were able to pay the monthly bills (liabilities) what ratio could they use?

Profit margin

Return on capital employed

Current ratio

Gross profit margin

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

a business has revenue of 180,000, cost of goods sold is 70,000, what is the gross profit?

220,000

110,000

2m

-110,000

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A factory owner is looking to improve the gross profit margin, what would you advise?

Lower the selling price

Find cheaper raw materials

Find a cheaper factory to rent

Sack a few managers

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The formula for calculating the (net) profit margin is?

Selling price x output

Revenue / profit x 100

Gross profit / revenue x 100

Net profit / revenue x 100

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Ratio analysis is only useful if a business can compare to previous years or a similar business

True

False

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which ratio is most important to a potential investor / shareholder?

Gross profit margin

Return on capital employed

Current ratio

Acid test ratio

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