Profitability and Liquidity Ratio

___________ measures the earning power of a firm.

• Profitability

• Liquidity

___________ refers to a firm's ability to repay its short-term liabilities when due.

• Profitability

• Liquidity

Which of the following is/are profitability ratio(s)?

• Sales Ratio

• Net Profit Ratio

• Margin

• Return on Capital Employed

Which of the following is/are liquidity ratio(s)?

• Current Ratio

• Acid-test Ratio

• Gearing Ratio

• Quick Ratio

Which of the following is calculating stockholders' equity/shareholders' funds?

• Share Capital + Share Premium - Retained Profits

• Share Capital + Share Premium + Retained Profits

• Share Capital - Share Premium - Retained Profits

• Share Capital - Share Premium + Retained Profits

Which one is calculating Gross Profit Ratio?

• Net Profit/Sales x 100%

• Gross Profit/Sales x 100%

• EBIT/Average Capital Employed x 100%

• Current Assets / Current Liabilities :1

Given that Sales = $1,000,000, Profit before tax = $60,000, Stockholders' Equity = $320,000, Non-current liabilities = $50,000, Interest expenses = $10,000. Calculate the net profit ratio.

• 5%

• 6%

• 7%

• 8%

Given that Sales = $1,000,000, Profit before tax = $60,000, Stockholders' Equity = $320,000, Non-current liabilities = $50,000, Interest expenses = $10,000. Calculate the return on capital employed.

• 18.92%

• 19.92%

• 20.92%

• 21.92%

Given that current assets = $85,000, current liabilities = $79,000, inventory = $9,800. What is the current ratio?

• 1.05 : 1

• 1.06 : 1

• 1.07 : 1

• 1.08 : 1

Given that current assets = $85,000, current liabilities = $79,000, inventory = $9,800. What is the quick ratio?

• 0.9 : 1

• 0.95 : 1

• 1 : 1

• 1.05 : 1