WorksheetsAccounting - Financial Analysis Ratios
Total questions: 14
Worksheet time: 7mins
If the number of products sold increases -
The Gross Profit Ratio will...
Increase
Decrease
Remain the same
If the number of products sold increases -
The Net Profit Ratio will...
Increase
Decrease
Remain the same
If the number of products sold increases -
The Return on Owner's Equity will...
Increase
Decrease
Remain the same
If the number of products sold decreases -
The Gross Profit will...
Increase
Decrease
Remain the same
If the number of products sold decreases -
The Net Profit will...
Increase
Decrease
Remain the same
A strategy to improve the Gross Profit Ratio is:
Increase the selling price
Decrease the selling price
Increase the volume of sales
Increase advertising
A strategy to improve the Gross Profit Ratio is:
Find a cheaper supplier of inventory
Decrease the selling price
Increase the volume of sales
Decrease spending on wages
A strategy to improve the Net Profit Ratio is:
(select more than one)
Find a cheaper supplier of inventory
Increase drawings
Increase the volume of sales
Decrease spending on wages
If the business finds a cheaper supplier of inventory - the following may happen...
(select more than one)
Net Profit Ratio will increase
Return on Owner's Equity will increases
Gross Profit Ratio will increase
Total Gross Profit will increase
If the business increases the number of products sold - the following may happen...
(select more than one)
Net Profit Ratio will increase
Total Cost of Goods Sold will increase
Gross Profit Ratio will increase
Total Gross Profit will increase
If a business can reduce its 'Other Expenses' such as wages and repairs & maintenance - it will...
Improve the Gross Profit Ratio
Improve the Return on Owners Equity
Improve the Net Profit Ratio
Increase the Total Gross Profit
If a supplier increase the costs of the inventory - the following may happen to the business...
(select more than one)
Net Profit Ratio will decrease
Return on Owner's Equity will increase
Gross Profit Ratio will decrease
Total Net Profit will increase
A strategy to improve the Return on Owner's Equity is...
Increase the volume of sales
Increase Drawings
Owner contributes more cash to the business
Decrease total expenses
For total Net Profit to increase the following may occur...
(Select more than one)
Sales volume increases
Total expenses decrease
Owner contributes more capital
Total expenses increase
