Business Finance Quiz

Which of the following is also known as trend analysis?

• Ratio Analysis

• Financial Statement Analysis

• Horizontal Analysis

• Vertical Analysis

Which is also known as common size analysis?

• Financial Statement Analysis

• Ratio Analysis

• Horizontal Analysis

• Vertical Analysis

Its purpose is to assess the current profitability and operational efficiency of the firm as well as its different departments so as to judge the financial health of the firm. This is called

• Financial Statement Analysis

• Vertical Analysis

• Horizontal Analysis

• Ratio Analysis

What are the two common liquidity ratios?

• Financial Statement Analysis and Ratio Analysis

• Vertical Analysis and Horizontal Analysis

• Quick Ratio and Current Ratio

• Profitability Ratio and Leverage Ratio

What is liquidity ratio used for?

• Measuring liquidity

• Analyzing efficiency

• Assessing profitability

• Evaluating leverage

What is the importance of liquidity ratio?

• Evaluating financial health

• Determining long-term strategy

• Analyzing competition

• Assessing market share

What are the three main profitability ratios?

• Liquidity, Profitability, Leverage

• Current Ratio, Quick Ratio, Vertical Analysis

• Gross Profit Margin, Net Profit Margin, Return on Assets

• Debt to Equity Ratio, Times Interest Earned, Return on Equity

What is profitability ratio used for?

• Evaluating profitability

• Analyzing financial health

• Assessing operational efficiency

• Measuring liquidity

Current Assets are P2,000, current liabilities are P3,500. What is the current ratio?

• 2.00

• 3.50

• 1.75

• 0.57

Inventory is P150,000. Accounts Payable is P450,000. Cash and Accounts Receivable total is P800,000. What is the current ratio? Quick ratio?

• 1.33, 0.50

• 2.00, 1.00

• 1.78, 0.67

• 1.50, 0.75