WorksheetsRatio Analysis
Total questions: 25
Worksheet time: 50mins
Mathematical expression of two financial items is known as
Mathematical Analysis
Mathematical expression
Ratio analysis
Ratio expression
a) Liquidity Ratio explain the liquidity Position of the concern
b) Current ratio express the short term liquidity of the Concern
Both the Statement are Correct
A is Correct but B is Wrong
B is Correct but A is Wrong
Both the Statement are Wrong
Which of the following ratios are the indicator of returns provided by business:
Efficiency
Profitability
Liquidity
None of these
If COGS is $4,50,000
G.P. is 25% on sales
What will be the sales?
$5,00,000
$8,00,000
$3,00,000
$6,00,000
The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:
Balance Sheet
Statement of Retained Earnings
Statement of Cash Flows
Statement of Profit or Loss
What is the formula for Gross Profit ratio
Profit / Net sales revenue X 100
Gross profit / Net sales revenue X 100
Gross profit / Sales revenue X 100
Profit / Cost of sales X 100
How do you calculate the Net Profit Ratio?
Net Profit divided by Net Sales x 100
Net Sales divided by Net Profit x 100
What does the Net Profit Ratio show us?
How much money the business has spent
How much money the business owes
The percentage of profit in each sale
The percentage of assets in each account
A high NPR could indicate the following things about the business (there is more than one correct answer):
Revenues are high and the expenses have been kept low
Selling price of sock may be too low
Amount of sales is very low compared to the fixed costs (electricity, wages etc.)
Business was able to cover all costs and still make a good profit
If Revenue from Operations is ? 1,60,000 and Gross Profit is 40,000, Gross Profit Ratio will be
20%
25%
30%
40%
Compute for the company's working capital.
Current Assets = P 30, 000
Current Liabilities = P 15, 000
P 45, 000
P 10, 000
P 15, 000
Test of short-term debt paying ability
Current ratio
Cash Flow ratio
Current Asset Turnover
Acid test
Which of the following is not a quick asset?
Cash
Inventories
Marketable Securities
Net receivables
Working Capital
Total Assets / Total Liabilities
Total Liabilities / Total Assets
Current Assets less Current Liabilities
Current Assets less Capital
Measures the liquidity of current assets
Cash to Current Assets ratio
Cash Flow ratio
Acid Test
Cash ratio
Calculate the Current Ratio for this business based on the data given
0.83:1
83%
0.88:1
75%
A business has a current ratio of 2.5, current assets of £4.5million and inventories of £1.5million. What are the current liabilities of the business?
£0.25m
£0.6m
£1.2m
£1.8m
Which Financial Ratio would provide the best insight into how effectively a business is controlling its total costs?
Gross Profit Margin
Operating Profit Margin
Return on Capital Employed
Current Ratio
Which business is generating the most Net Profit?
Business A
Business B
Business C
Business D
Which business is the best short term financial position?
Business A
Business B
Business C
Business D
Which business is using it's assets the best?
Business A
Business B
Business C
Business D
