Ratios (1)

Is an employee an internal or external stakeholder of a business?

• Internal

• External

Is the bank an internal or external stakeholder of a business?

• Internal

• External

Profitability is ...

• The short-term stability of the business

• The effective and efficient use of assets and liabilities

• The relationship between profit, revenue, assets & capital employed

• The long-term stability of the business

Liquidity relates to

• The short-term stability of the business

• The effective and efficient use of assets and liabilities

• The relationship between profit, revenue, assets & capital employed

• The long-term stability of the business

Capital structure is ...

• The short-term stability of the business

• The effective and efficient use of assets and liabilities

• The relationship between profit, revenue, assets & capital employed

• The long-term stability of the business

Efficiency is ...

• The short-term stability of the business

• The effective and efficient use of assets and liabilities

• The relationship between profit, revenue, assets & capital employed

• The long-term stability of the business

Gross profit margin is calculated as ...

• Gross profit divided by revenue, x 100

• Revenue divided by gross profit, x 100

• Profit for the year divided by revenue, x 100

• Revenue divided by profit for the year, x 100

'Mark-up' relates to cost of sales?

• True

• False

Is profit the same as cash?

• Yes

• No

Which category of ratios do the current and liquid capital ratios fall into?

• Efficiency

• Capital structure

• Profitability

• Liquidity