Ratio Analysis

Mathematical expression of two financial items is known as

• Mathematical Analysis

• Mathematical expression

• Ratio analysis

• Ratio expression

Efficiency ratios highlights:

• How well assets and liabilities are managed

• Measures how quickly assets can be converted to cash

• Share of ownership in a company

• A comparison of two amounts

Which of the following is the correct formula for calculating Return on investments(ROI)

• N.P. before interest but after tax *100/Capital employed

• N.P. before interest and tax *100/Capital employed

• N.P. after interest & tax *100/Capital employed

• None of these

Liquid Assets= ?

• CA- Prepaid expenses

• CA- Inventory- Prepaid expenses

• CA + Inventory- Prepaid expenses

• CA- Inventory + Prepaid expenses

If working capital of a company is nil, what will be the current ratio?

• 1:1

• 0:1

• 1:0

• 2:1

If total expenses exceed total revenue, a net loss is reported

• True
• False

What does COGS stand for?

• cost of goals scored
• cost of goods stocked
• cost of goods sold
• cost of goods solvent

How do you calculate Gross Profit?

• Sales - COGS

• Sales - NP

• COGS - Expenses

• COGS - NP

Examples may include salaries, utilities, rent, insurance, and office supplies.

• Revenue
• Expense
• Net Income
• Net Loss

The sources of money generated by the sale of products or services.

• Revenue
• Expenses
• Net Income
• Net Loss