Ratios (from attached sheet)

Q 1 What is a business ratio?

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)

Which of the following is a liquidity ratio?

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)

If a company's current ratio is 2:1, what does it mean?

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)

Which ratio measures a company's ability to pay its short-term debts?

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)

A high Debt-to-Equity Ratio indicates:

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)

Net Profit Margin is calculated as

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)

Which ratio assesses the efficiency of a company's use of its assets to generate sales?

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)

What is the ideal Acid Test Ratio for a company?

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)

If a company has a high Return on Investment (ROI), it means:

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)

Sales €120000,  Gross Profit €60000, Expenses  €20000.

What is the Net Profit Margin?

• Answer (a)

• Answer (b)

• Answer (c)

• Answer (d)