C16 POA Theory Profitability
Authored by Hong Shawn
Other
9th - 12th Grade
Used 6+ times
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11 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Define Profitability
the ability of a business to generate excess income to cover its expenses.
the ability of a business to generate excess expenses to cover its income.
the ability of a business to generate profit
the ability of a business to generate income
2.
MULTIPLE SELECT QUESTION
45 sec • 3 pts
Which of the following are ways to improve profitability
sells goods at a higher selling price
buy goods at a lower cost price
sell excess Non Current Assets to gain extra cash
reduce operating expenses
obtain long term borrowings
3.
MULTIPLE SELECT QUESTION
45 sec • 3 pts
State the importances of profitability
to have enough cash to pay for current liabilities
to be able to reward and retain employees
to continue the business operations in the long run
to attract shareholders and investors to invest more into the business
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
State the formula gross profit margin
Gross profit / Cost of sales x 100%
Gross profit / Net sales revenue x 100%
Profit for the year / Net sales revenue x 100%
Profit for the year / Average equity x 100%
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Net sales revenue = $180 000
Gross profit = $60 000
Profit for the year = 25 000
Calculate the gross profit margin, provide the answer in 2 decimal places.
3.00%
7.2%
13.88%
33.33%
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
State the profit margin formula
Gross profit / Cost of sales x 100%
Gross profit / Net sales revenue x 100%
Profit for the year / Net sales revenue x 100%
Profit for the year / Average equity x 100%
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
State the mark-up on cost formula
Gross profit / Cost of sales x 100%
Gross profit / Net sales revenue x 100%
Profit for the year / Net sales revenue x 100%
Profit for the year / Average equity x 100%
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