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FINANCIAL RATIO ANALYSIS GAME ROOM 2

Total questions: 20

Worksheet time: 13mins

Name
Class
Date
1.

Which is not a quick asset?

a)

Cash equivalents

b)

Notes receivable

c)

Inventories

d)

Cash substitutes

e)

NOT IN THE CHOICES

2.

Inventory turnover

a)

Short-term Solvency and Liquidity

b)

Asset Liquidity and Management Efficiency

c)

Long-term Financial Position or Stability

d)

Profitability and Returns to Investors

e)

NOT IN THE CHOICES

3.

Capital intensity ratio

a)

Total capital divided by total assets

b)

Total assets divided by total liabilities

c)

Net sales divided by total capital

d)

Total assets divided by net sales

e)

NOT IN THE CHOICES

4.

Total equity divided by total assets

a)

Equity ratio

b)

Debt ratio

c)

Debt-to-equity ratio

d)

Equity-to-debt ratio

e)

NOT IN THE CHOICES

5.

Cash coverage ratio

a)

Short-term Solvency and Liquidity

b)

Asset Liquidity and Management Efficiency

c)

Long-term Financial Position or Stability

d)

Profitability and Returns to Investors

e)

NOT IN THE CHOICES

6.

Dividends per share divided by earnings per share

a)

Payout ratio

b)

Dividend payout ratio

c)

Earnings payout ratio

d)

Dividend-earnings payout ratio

e)

NOT IN THE CHOICES

7.

Net income after taxes divided by net sales

a)

Net profit margin

b)

Net sales margin

c)

Net profit and sales margin

d)

Profit-sales ratio

e)

NOT IN THE CHOICES

8.

Rate of return on assets

a)

Short-term Solvency and Liquidity

b)

Asset Liquidity and Management Efficiency

c)

Long-term Financial Position or Stability

d)

Profitability and Returns to Investors

e)

NOT IN THE CHOICES

9.

If current liabilities are P100,000 and current assets are P200,000, what is the current ratio?

a)

0.50

b)

1.20

c)

1.50

d)

2.00

e)

NOT IN THE CHOICES

10.

Defensive interval ratio

a)

Short-term Solvency and Liquidity

b)

Asset Liquidity and Management Efficiency

c)

Long-term Financial Position or Stability

d)

Profitability and Returns to Investors

e)

NOT IN THE CHOICES

11.

Cost of goods sold divided by average merchandise inventory

a)

Merchandise turnover

b)

Cost of goods sold margin

c)

Inventory margin

d)

Days sales in receivables

e)

NOT IN THE CHOICES

12.

Which is not a profitability ratio?

a)

Earnings per share

b)

Dividend yield

c)

Price/earnings ratio

d)

Rate of return on net sales

e)

NOT IN THE CHOICES

13.

If net sales is P200,000 and cost of sales is P150,000, how much is the gross profit margin in percent?

a)

25.00%

b)

50.00%

c)

75.00%

d)

133.33%

e)

NOT IN THE CHOICES

14.

Cash cycle

a)

Short-term Solvency and Liquidity

b)

Asset Liquidity and Management Efficiency

c)

Long-term Financial Position or Stability

d)

Profitability and Returns to Investors

e)

NOT IN THE CHOICES

15.

Cash plus marketable securities divided by total current liabilities equals ________.

a)

Current ratio

b)

Current asset ratio

c)

Acid-test ratio

d)

Cash ratio

e)

NOT IN THE CHOICES

16.

If the fixed charges are P2,000, depreciation is P1,200 and EBIT is P2,600, how much is the cash coverage ratio?

a)

1.23

b)

0.53

c)

1.90

d)

1.25

e)

NOT IN THE CHOICES

17.

If net sales are P1,500,000 and accounts receivable amount to P300,000, how long is the average collection period?

a)

36.00 days

b)

45.00 days

c)

64.00 days

d)

72.00 days

e)

NOT IN THE CHOICES

18.

If total assets are P1,000,000 and total equity is P650,000, how much is the debt ratio?

a)

35.00%

b)

45.00%

c)

55.00%

d)

65.00%

e)

NOT IN THE CHOICES

19.

Free cash flow

a)

Short-term Solvency and Liquidity

b)

Asset Liquidity and Management Efficiency

c)

Long-term Financial Position or Stability

d)

Profitability and Returns to Investors

e)

NOT IN THE CHOICES

20.

Which of the following is not a liquidity ratio?

a)

Defensive interval ratio

b)

Cash ratio

c)

Rate of return on equity

d)

Quick ratio

e)

NOT IN THE CHOICES