Theme 3 Task 15: Review Questions

Which financial statement shows a businesses’ trading position and whether it has made a profit or loss?

• Cash flow forecast

• Cash, revenue and profit budget

• Statement of comprehensive income

• Statement of financial position

Which one of the following ratios is a measure of liquidity?

• Gearing

• Current ratio

• ROCE

• Operating profit margin

Which ratio is calculated using the formula shown below?

long-term liabilities x 100

total equity + long-term liabilities

• ROCE

• Current ratio

• Gearing

• Working capital

• 35%

• 250%

• 20%

• 5%

• A

• B

• C

• D

• A

• B

• C

• D

Firm A employs 20 000 in year 1. In year 2 it increases its workforce by 10%, output is

154 000 units per year. What is firm A’s labour productivity?

• 7

• 8

• 13

• 14

Labour turnover is defined as:

• The output per worker in a given time period

• The revenue earned per employee

• The average length of service per employee

• The number of employees leaving in relation to the average

  number of employees

Which measure of human resource performance is expressed as a percentage?

• Labour size

• Labour turnover

• Labour productivity

• Labour cost per unit

A firm sells 10 000 units at £5 per unit. Employee cost are £12 000. What are employee costs as a percentage of turnover?

• 12%

• 24%

• 120%

• 416%