Review Income & Financial Statement

How do you calculate the acid test ratio?

• current assets / current liability

• (current assets - inventory) / current liabilities

• using a litmus paper

• (profit / capital employed) x 100

How do you calculate the ROCE (Return on Capital Employed)?

• (profit / capital employed) x 100

• (current assets - inventory) / current liabilities

• (Profit x Capital employed) / 100

• (Gross profit margin / Capital employed) x 100

What is the percentage of sales that is turned into profit?

• Profit margin

• Profit

• Sales revenue

• Break-even point

which is used to show business ability to pay short-term debts?

• gross profit margin

• liquidity ratio

How do you calculate the gross profit margin?

• (Gross profit / sales revenue) / 100

• (Gross profit x sales revenue) / 100

• (Gross profit / sales revenue) x 100

• (Gross profit x sales revenue) x 100

Which one of these will be classified as CURRENT ASSETS in a statement of financial position?

• property

• machinery and technology

• trade receivables

• vehicles

Which one of these will be classified as CURRENT ASSETS in a statement of financial position?

• machines

• inventory

• furnitures

• vehicles

Which one of these will be classified as CURRENT LIABILITIES in a statement of financial position?

• debentures

• mortgage

• long-term loans

• trade payables

Which one of these will be classified as NON-CURRENT LIABILITIES in a statement of financial position?

• bank balance

• mortgage

• bank overdraft

• trade payables

Which one of these will be classified as NON-CURRENT LIABILITIES in a statement of financial position?

• bank overdraft

• trade receivables

• debentures

• bank balance