Business RATIOS

Which of the following items is an adjustment in final accounts?

• Buildings

• Opening Stock

• Sales

• Closing Stock

Which one of the following is NOT a cause of DEPRECIATION?

• AGE

• COST(NEW)

• OBSOLESCENCE

• USAGE

A company buys a VAN for €40000. They hope to keep it for 4 years and sell it for €16000. What is the (fixed) depreciation amount per year?

• €4000

• €10000

• €6000

• €12000

What does N.B.V. stand for in Final Accounts?

• New Basic Value

• Net Book Value

• Net Basic View

• Net Book View

A car cost a company €30000. It is depreciated by 10% per year. What is the N.B.V. after one year?

• €27000

• €33000

• €20000

• €24000

Employees, Banks, Suppliers, Managers and Business owners all have an interest in looking at business ratios or assessing a business. Together they are called what?

• Competitors

• Shop owners

• Shareholders

• Stakeholders

Sales €200000, Gross Profit €50000, Net Profit €10000, Capital Employed €240000.

What is Gross Profit Margin?

• 20%

• 25%

• 10%

• 20.8%

Sales €200000, Gross Profit €50000, Net Profit €10000, Capital Employed €240000.

What is the Net Profit Margin?

• 5%

• 2.4%

• 50%

• 24%

Sales €200000, Gross Profit €50000, Net Profit €15000, Capital Employed €260000.

What is the return on capital employed?

• 5.7%

• 7.5%

• 5.8%

• 30%

Current Assets €60000, Current Liabilities €20000, Stock €10000, Cash €10000.

What is the 'Current Ratio'?

• 6:1

• 3:1

• 2.5:1

• 10:1