Analysis of Financial statements

Which from the list below can't be used to calculate the liquidity of a business?

• Stock holding period

• Stock turnover rate

• Acid-test ratio

• Mark-up achieved

How will the acid-test ratio be calculated?

• Current Assets : Current Liabilities

• Assets : Liabilities

• Current Assets - Inventory : Current Liabilities

• Current Assets + Inventory : Current Liabilities

Which from the list below is the formula to calculate the mark-up % achieved?

• Net profit / Cost of sales x 100

• Gross Profit / Sales x 100

• Gross Profit / Cost of sales x 100

• Cost of sales x 100 / 150

From the list below, which ratio calculates the solvency of a business?

• Total assets : Total liabilities

• Current assets : Current liabilities

• Long term debt : Total Liabilities

• Total assets - inventory : Total Liabilities

Which of the the following won't help you to identify the return of shareholders in a company.

• EPS

• DPS

• NAV

• ROL

How will the earnings per share (EPS) be calculated?

• Profit before tax / Dividends per share

• Profit before tax / no of shares in issue

• Profit after tax / no of shares in issue

• Profit before tax / authorized shares

How will the debtors collection period be calculated?

• Average debtors / credit sales x 365

• Credit sales / average debtors x 365

• Average debtors + average creditors / cost of sales x 365

• Debtors x credit sales x 365

Which is the category to see whether the company can meet their short term obligations.

• Solvency

• Profitability

• Liquidity

• Return

With which ratio can the risk of a company be calculated?

• Debt : Equity

• Current assets : Current liablities

• Total assets : total liabilities

• Total liabilities : Equity

Which formula represents the ROTCE correctly?

• Net profit before tax + Interest expense x 100

  Average shareholders equity + Loans

• Net profit after tax + Interest expense x 100

  Average shareholders equity + Loans

• Net profit before tax + Interest expense x 100

  Average shareholders equity + all liabilities

• Net profit after tax x 100

  Average shareholders equity + Loans