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Worksheets

Financial Ratios

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

It expresses operating income as a percentage of sales.

a)

Operating Income Ratio

b)

Gross Profit Ratio

c)

Net Profit Ratio

2.

It shows how much profit will go to the owner for every peso of sales made.

a)

Operating Income Ratio

b)

Gross Profit Ratio

c)

Net Profit Ratio

3.

It reports the peso value of the gross profit earned for every peso of sales.

a)

Operating Income Ratio

b)

Gross Profit Ratio

c)

Net Profit Ratio

4.

It measures the peso value of income generated by employing the company's assets.

a)

Return on Equity

b)

Return on Assets

c)

Return on Liability

5.

It measures the return (net income) generated by the owner's capital invested in the business.

a)

Return on Equity

b)

Return on Assets

c)

Return on Liability

6.

It measures the peso value of sales generated for every peso of the company's assets.

a)

Fixed Assets Turnover Ratio

b)

Accounts Receivable Turnover

c)

Asset Turnover Ratio

7.

It is the indicator of the efficiency of fixed assets in generating sales.

a)

Fixed Assets Turnover Ratio

b)

Accounts Receivable Turnover

c)

Asset Turnover Ratio

8.

It measures the number of times the company was able to collect on its average accounts receivable during the year.

a)

Fixed Assets Turnover Ratio

b)

Accounts Receivable Turnover

c)

Asset Turnover Ratio

9.

It indicates the percentage of the company's assets that are financed by debt.

a)

Debt to Equity Ratio

b)

Debt Ratio

c)

Equity Ratio

10.

It indicates the company's reliance on debt or liability as a source of financing relative to equity.

a)

Debt to Equity Ratio

b)

Debt Ratio

c)

Equity Ratio

11.

It indicates the percentage of the company's assets that are financed by capital.

a)

Debt to Equity Ratio

b)

Debt Ratio

c)

Equity Ratio

12.

It is used to evaluate the company's liquidity.

a)

Current Ratio

b)

Interest Coverage Ratio

c)

Quick Ratio

13.

It measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately.

a)

Current Ratio

b)

Interest Coverage Ratio

c)

Quick Ratio

14.

It measures the company's ability to cover the interest expense on its liability with its operating income.

a)

Current Ratio

b)

Interest Coverage Ratio

c)

Quick Ratio

15.

It expresses the relationship among selected items of financial statement data.

a)

Financial Analysis

b)

Ratio Analysis

c)

Profitability Analysis

16.

It is used to measure the ability of the company to generate income from the use of its assets and invested capital as well as control its cost.

a)

Operational Efficiency Ratios

b)

Liquidity Ratios

c)

Profitability Ratios

17.

It measures the ability of the company to utilize its assets.

a)

Operational Efficiency Ratios

b)

Liquidity Ratios

c)

Profitability Ratios

18.

It refers to the company's capacity to pay their long term liabilities.

a)

Inventory Ratios

b)

Liquidity Ratios

c)

Solvency Ratios

19.

It intends to measure the company's ability to pay debts that are coming due (short term debt).

a)

Inventory Ratios

b)

Liquidity Ratios

c)

Solvency Ratios

20.

It is measured based on the cost of goods sold and not sales.

a)

Inventory Turnover Ratios

b)

Liquidity Ratios

c)

Solvency Ratios