Analysis of Published Accounts

What is the formula of Acid Test Ratio?

• Current assets/Current Liabilities

• Liquid assets/ Current liabilities

• Current liabilities/Current assets

• Current Liabilities/ Current Assets

What is the formula of Current Ratio?

• liquid liabilities/current assets

• liquid assets/current liabilities

• Currents Assets/Current Liabilities

• Current Liabilities/Current Assets

The formula of gross profit margin ratio is...

• gross profit/revenue x 100

• revenue / gross profit x 100

• operating profit / revenue x 100

• revenue / operating profit x 100

ROCE formula is .....

• revenue / operating profit x 100

• operating profit / revenue x 100

• capital employed/operating profit x 100

• operating profit/capital employed x 100

Trade Payables Turnover formula is....

• credit sales / trade receivables x 365

• Trade payable / credit purchase x 365

• credit purchase/ trade payable x 365

• trade receivables / credit sales x 365

The formula of gearing ratio is.....

• non-current liabilities/capital employed x 100

• capital employed / non-current liabilities x 100

• dividend per share / market share price x 100

• market share price / dividend per share x 100

The ratio shows the ability of firm to pay its creditor is.....

• Profitability

• Liquidity

• Financial Efficiency

• Gearing

The ratio that shows risk in arising from financial structure is .....

• Profitability

• Liquidity

• Gearing

• Shareholder

The ratio which shows overall performance of firm is....

• Profitability

• Liquidity

• Financial Efficiency

• Gearing

Which one is NOT the limitations of ratio analysis

• Accounts are not historical

• Accounts only contain items that can have a numerical value

• There is a range of different formulate for some ratios

• Ratios cannot be looked at in isolation