Finance formulas (Year 13)

Finance formulas (Year 13)

12th Grade

14 Qs

quiz-placeholder

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Finance formulas (Year 13)

Finance formulas (Year 13)

Assessment

Quiz

Business

12th Grade

Practice Problem

Easy

Created by

Michael Smith

Used 6+ times

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14 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula to find the current ratio of a business?

Current assets ÷ current liabilities

Current assets - inventory ÷ current liabilities

Gross profit ÷ revenue x 100

Operating profit ÷ revenue x 100

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula to find the acid test ratio of a business?

Current assets ÷ current liabilities

Current assets - inventory ÷ current liabilities

Gross profit ÷ revenue x 100

Operating profit ÷ revenue x 100

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula to find the gross profit margin of a business?

Current assets ÷ current liabilities

Current assets - inventory ÷ current liabilities

Gross profit ÷ revenue x 100

Operating profit ÷ revenue x 100

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula to find the operating profit margin of a business?

Current assets ÷ current liabilities

Current assets - inventory ÷ current liabilities

Gross profit ÷ revenue x 100

Operating profit ÷ revenue x 100

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula to find the gearing ratio of a business?

Non-current liabilities ÷ shareholders' equity + non-current liabilities

Trade receivables ÷ sales revenue x 365

Trade payables ÷ cost of sales x 365

Cost of sales ÷ average value of inventories

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula to find the rate of inventory turnover of a business?

Non-current liabilities ÷ shareholders' equity + non-current liabilities

Trade receivables ÷ sales revenue x 365

Trade payables ÷ cost of sales x 365

Cost of sales ÷ average value of inventories

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula to find the trade receivables turnover (in days) of a business?

Non-current liabilities ÷ shareholders' equity + non-current liabilities

Trade receivables ÷ sales revenue x 365

Trade payables ÷ cost of sales x 365

Cost of sales ÷ average value of inventories

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