WorksheetsRatio
Total questions: 25
Worksheet time: 16mins
Name
Class
Date
1.
The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:
a)
Balance Sheet
b)
Statement of Retained Earnings
c)
Statement of Cash Flows
d)
Income Statement
2.
If total expenses exceed total revenue, a net loss is reported
a)
True
b)
False
3.
What does COGS stand for?
a)
cost of goals scored
b)
cost of goods stocked
c)
cost of goods sold
d)
cost of goods solvent
4.
How do you calculate Gross Profit?
a)
Sales - COGS
b)
Sales - NP
c)
COGS - Expenses
d)
COGS - NP
5.
The income statement can be expressed as an equation:
a)
Income =Income-Expenses
b)
Revenue-Expenses = Net Income (Loss)
c)
Revenue + Expenses = Income/Loss
d)
Expenses = Net Income + Revenue
6.
Examples may include salaries, utilities, rent, insurance, and office supplies.
a)
Revenue
b)
Expense
c)
Net Income
d)
Net Loss
7.
The sources of money generated by the sale of products or services.
a)
Revenue
b)
Expenses
c)
Net Income
d)
Net Loss
8.
This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners o the company are entitled to.
a)
Income Statement
b)
Balance Sheet
9.
If total expenses exceed total revenue, a net loss is reported
a)
True
b)
False
10.
The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:
a)
Balance Sheet
b)
Statement of Retained Earnings
c)
Statement of Cash Flows
d)
Income Statement
11.
The amount of profit generated by the firm in relation to the amount invested by the owners.
a)
return on investment
b)
ratio
c)
working capital
d)
inventory turnover
12.
Indicates a firm's ability to quickly liquidate assets to pay off current debts.
a)
asset turnover ratio
b)
inventory turnover
c)
debt-to-assets ratio
d)
acid test/ quick ratio
13.
The comparison of a firm's current assets to current liabilities. The ratio indicates the amount of current assets available to pay off R1 of current debt.
a)
acid test/ quick ratio
b)
asset turnover ratio
c)
current ratio
d)
inventory turnover
14.
The difference between current assets and current liabilities at a point in time. The amount of money that would be left over if all the current liabilities were paid off by current assets.
a)
current ratio
b)
working capital
c)
acid test/ quick ratio
d)
asset turnover ratio
15.
Financial ratios that tell how much of each rand of sales, assets, and owner's equity resulted in net profit.
a)
liquidity ratios
b)
efficiency ratios
c)
profitability ratios
d)
leverage ratios
16.
A comparison between two numbers showing how many times one number exceeds the other.
a)
return on investment
b)
profitability ratios
c)
ratio
d)
efficiency ratios
17.
Financial ratios that show how and to what degree a company has financed its assets.
a)
leverage ratios
b)
liquidity ratios
c)
efficiency ratios
d)
profitability ratios
18.
The difference between current assets and current liabilities at a point in time. The amount of money that would be left over if all the current liabilities were paid off by current assets.
a)
current ratio
b)
working capital
c)
acid test/ quick ratio
d)
asset turnover ratio
19.
The comparison of a firm's current assets to current liabilities. The ratio indicates the amount of current assets available to pay off $1 of current debt.
a)
acid test/ quick ratio
b)
asset turnover ratio
c)
current ratio
d)
inventory turnover
20.
Indicates a firm's ability to quickly liquidate assets to pay off current debts.
a)
asset turnover ratio
b)
inventory turnover
c)
debt-to-assets ratio
d)
acid test/ quick ratio
21.
The number of times during an operating period that the average inventory was sold.
a)
working capital
b)
return on investment
c)
inventory turnover
d)
debt-to-assets ratio
22.
Indicates how quickly a firm's credit accounts are being collected and is a good measure of how efficiently a firm is managing its accounts receivable.
a)
average collection period
b)
efficiency ratios
c)
working capital
d)
current ratio
23.
Measures to what degree the assets of the firm have been financed with borrowed funds.
a)
debt-to-equity-ratio
b)
liquidity ratio
c)
profitability ratio
d)
debt-to-assets ratio
24.
Compares the total debt of the firm with the owner's equity.
a)
debt-to-assets ratio
b)
debt-to-equity ratio
c)
asset turnover ratio
d)
efficiency ratio
25.
The amount of profit generated by the firm in relation to the amount invested by the owners.
a)
return on investment
b)
ratio
c)
working capital
d)
inventory turnover
100 %
