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Grade 12 Quiz 1 Term 2

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

What does capital employed mean?

a)

It means how much the business is worth

b)

It means how much the business is sold to customers

c)

It means how much the business has bought off their suppliers

d)

It means how much the business can be expanded

2.

How do you calculate Net Profit?

a)

Gross Profit plus Expenses

b)

Sales minus Expenses

c)

Cost of Goods sold minus Expenses

d)

Gross Profit minus Expenses

3.

How do you calculate cost of goods sold?

a)

closing stock plus purchases minus opening stock

b)

closing stock minus purchases plus opening stock

c)

opening stock minus purchases plus closing stock

d)

opening stock plus purchases minus closing stock

4.

How do you calculate working capital?

a)

Current Assets minus Current Liabilities

b)

Current Liabilities minus Current Assets

c)

Current Assets plus Current Liabilities

d)

Current Liabilities plus Current Assets

5.

What is an asset?

a)

Something you owe - like a bill

b)

Someone you own - like a car

c)

Something you need to buy in the future

d)

Something you want to buy

6.

What are financial ratios?

a)

Measuring financial performance of a supplier

b)

Measuring financial performance of a stock company

c)

Measuring financial performance of a business

d)

Measuring financial performance of a customer

7.

How do you calculate gross profit?

a)

Sales plus Cost of Goods Sold

b)

Sales minus Cost of Goods Sold

c)

Cost of Goods Sold minus Sales

d)

Sales minus Closing Stock

8.

What is the formula for the current ratio?

a)

Total Current Assets divided by Total Current Liabilities

b)

Total Current Liabilities divided by Total Current Assets

c)

Total Current Assets divided by Total Working Capital

d)

Total Current Liabilities divided by Capital Employed

9.

What is the formula for Net Profit Percentage?

a)

Net Profit divided by Credit Sales x100

b)

Net Profit divided by Turnover x 100

c)

Net Profit divided by expenses x 100

d)

Net Profit divided by capital employed x 100

10.

What is the formula for capital employed?

a)

Gross Profit divided by Capital Employed x 100

b)

Capital - drawings + retained earnings

c)

Net Profit divided by Credit Sales x 100

d)

Retained earnings+Capital-drawings

11.

What is the formula for stock turnover days?

a)

Average expenses divided by cost of goods sold x 365 days

b)

Average inventory divided by net profit x 365 days

c)

Average inventory divided by cost of goods sold x 365 days

d)

Average inventory divided by gross profit x 365 days

12.

What is the assets turnover formula?

a)

Revenue/Total Assets

b)

Sales/Total Current Assets

c)

Turnover/Total Fixed Assets

d)

Net Profit/Total Assets

13.

Which are the best examples of assets?

a)

motor vehicle, creditors, fixtures and fittings, cash in the bank

b)

Accrued expenses, inventory, debtors

c)

motor vehicle, inventory, fixtures and fittings

d)

motor vehicle, debtors, fixtures and fittings, overdraft

14.

Which is the true statement....

a)

Investors check the profit and loss to see how well the business is performing

b)

Investors check financial ratios to see how well the business is performing

c)

Investors check the balance sheet to see how well the business is performing

d)

Investors check the profit to see how well the business is performing