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WorksheetsRatios
Total questions: 10
Worksheet time: 5mins
Gross profit is calculated by...
Revenue - cost of sales
Revenue + cost of sales
Revenue - expenses
Revenue + expenses
Net profit is calculated by...
Revenue / fixed costs
Revenue - cost of sales
Gross profit - expenses
Gross profit + fixed costs
Liquidity measures...
Whether the business has enough cash to pay their bills
Whether the business will make a profit
Whether the business will survive
Whether people should invest in the business
Gross profit margin is calculated by...
Gross profit / Revenue
(Gross profit / Revenue) x 100
(Gross profit + Revenue) x 100
Gross Profit - 100
Net profit margin is calculated by...
(Net profit / Revenue) x 100
Net profit + Revenue
Net profit / Revenue
(Expenses - Revenue) x 100
Current ratio is calculated by...
Current assets + Current liabilities
Current assets / Current liabilities
(Current assets - Stock) / Current liabilities
((Current assets - Stock) / Current liabilities) x 100
The ideal result for the current ratio is...
Exactly 1 : 1
Exactly 1.5 : 1
Between 1 and 5 : 1
Between 1.5 and 2 :1
Liquid capital ratio is calculated by...
(Current assets - stock) / current liabilities
Current assets / current liabilities
(Current assets - cash) / current liabilities
(Current assets - stock) / current liabilities x 100
The ideal result for the liquid capital ratio is...
Between 1.5 and 2 :1
1 : 1
3 : 1
0.5 : 1
To improve their gross profit a business could...
Raise prices
Find a cheaper supplier of materials
Reduce advertising
Pay less overtime to workers
