Which ratio uses the calculation current assets/current liabilities?

• Acid Test Ratio

• Inventory Turnover

• Current Ratio

• Inventory Turnover

How would you classify a business with a Gearing ratio of 58%?

• Lowly Geared

• Highly Geared

• Mid Geared

• Slow Geared

What is the formula for Operating Profit Margin?

• Gross Profit/Revenue

• Revenue/Operating Profit

• Operating Profit/Revenue

• Operating Profit/Revenue x100

What does Return on Capital Employed (ROCE) measure?

• Effectiveness of staff

• Effectiveness of meeting short term liabilities

• Effectiveness of generating a profit from capital

• Effectiveness of generating profit from sales

What is the benchmark for Operating Profit Margin?

• 50%

• 15%

• 30%

• 20%

How can you reduce a firm's Gearing Ratio?

• Pay off long term loans

• Sell assets

• Increase sales

• Take out a bank loan

What is inventory?

• People you owe money to

• Stock

• Sales

• People who owe you money

Which of the following is NOT a Profitability ratio

• Operating Profit Margin

• Current Ratio

• Gross Profit Margin

• Return on Capital Employed (ROCE)

What is the ideal benchmark for the Current ratio?

• 1-2:1

• 2:1

• 1.5-2:1

• 1.5-2.5:1

How do you calculate Capital Employed?

• Total Equity + Current Liabilities

• Total Equity + Current Assets

• Total Equity + Non Current Assets

• Total Equity + Non Current Liabilities