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WorksheetsAnalysis and Interpretation Lesson #7 Review
Total questions: 12
Worksheet time: 6mins
Name
Class
Date
1.
The ability of a business to meet its debts as they fall due.
a)
Stability
b)
Liquidity
c)
Profitability
d)
Efficiency
2.
Indicators to assess the LEVEL of liquidity are:
a)
WCR & QAR
b)
CFC & STO
c)
CFC, QAR, WCR
d)
WCR, DTO, QAR
3.
Stock Turnover, Creditors Turnover and Debtors Turnover are used to measure the _________ of liquidity
a)
Speed
b)
Level
c)
Cost
d)
Cash Flow
4.
The Working Capital Ratio is:
a)
CL/CA
b)
(CA/CL) x 100
c)
CA/CL
d)
(CL/CA) x 100
5.
If current assets exceed current liabilities, the business may be facing a liquidity problem.
a)
True
b)
False
6.
A high WCR is ideal for all businesses
a)
True
b)
False
7.
An increase in Current Assets will
a)
Improve WCR
b)
Worsen WCR
8.
The business’s ability to meet its immediate debts is measured by
a)
Cash Flow Cover
b)
Creditors Turnover
c)
Quick Asset Ratio
d)
Working Capital Ratio
9.
QAR removes stock and bank overdraft from the WCR
a)
True
b)
False
10.
Stock is removed from the QAR because it would need to be sold too low to continue business.
a)
True
b)
False
11.
Ideally a QAR should be
a)
2:1
b)
1:1
c)
0.8:1
d)
Benchmarked
12.
CFC measures the number of times Net Cash Flows from Operations is able to cover the average liabilities
a)
True
b)
False
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