Financial Statements Quiz

What is the Gross Profit percentage if the Sales revenue is £180,000, Purchases for the year are £130,000, Opening Inventories are £20,000, and Closing Inventories are £30,000?

• A) 25%

• B) 50%

• C) 40%

• D) 33%

Calculate the Gearing percentage using the following data: Non-current assets are £270,000, Current assets are £160,000, Non-current liabilities are £90,000, Current liabilities are £45,000, and Total Equity is £295,000.

• A) 23%

• B) 45%

• C) 31%

• D) 15%

What is the formula for the Current Ratio in financial statements?

• A) Current Assets / Current Liabilities

• B) Total Assets / Total Liabilities

• C) Current Liabilities / Current Assets

• D) Non-current Assets / Non-current Liabilities

What is the formula for the Acid Test Ratio?

• A) (Current Assets - Inventory) / Current Liabilities

• B) Current Assets / Current Liabilities

• C) Total Assets / Total Liabilities

• D) (Current Assets - Receivables) / Current Liabilities

Calculate the Operating Profit percentage if the Revenue is £2,000 and Profit from Operations is £160.

• A) 8%

• B) 10%

• C) 12%

• D) 15%

What is the Return on Capital Employed if the Profit after tax is £125 and the Share Capital plus Retained Earnings total £750?

• A) 16.67%

• B) 10%

• C) 20%

• D) 25%

Calculate the Asset turnover ratio using Total assets of £1,010 and Revenue of £2,000.

• A) 1.98

• B) 0.50

• C) 2.00

• D) 1.00

What is the Net Profit Margin if the Net Income is £200 and the Total Revenue is £1,600?

• A) 12.5%

• B) 15%

• C) 10%

• D) 8%

Calculate the Debt to Equity Ratio using Total Liabilities of £500,000 and Total Equity of £1,000,000.

• A) 0.5

• B) 1.0

• C) 1.5

• D) 2.0

What is the Earnings Per Share if the Net Income is £300,000 and there are 150,000 shares outstanding?

• A) £2.00

• B) £1.50

• C) £2.50

• D) £3.00