Financial Ratios Quiz
Authored by Katarzyna Pirie
Business
Vocational training
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9 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the main purpose of profitability ratios?
To measure short-term debts
To measure how quickly stock is sold
To measure how much profit a business makes
To measure employee performance
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a liquidity ratio?
Return on Capital Employed (ROCE)
Current Ratio
Stock Turnover
Net Profit Margin
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A current ratio of 0.8:1 suggests:
Strong liquidity
The business cannot pay short-term debts easily
High profitability
Efficient stock management
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which ratio measures how quickly stock is sold?
ROCE
Acid Test Ratio
Stock Turnover
Current Ratio
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does ROCE measure?
Speed of stock sales
Ability to pay debts
Profit made from capital invested
Time taken to pay suppliers
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which is a limitation of ratio analysis?
Ratios are always accurate
Ratios ignore financial data
Ratios are based on past data
Ratios cannot be calculated
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why should ratios be compared over time?
To increase profit
To identify trends and performance changes
To reduce liabilities
To avoid calculations
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