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WorksheetsRatios & Cash Flow Statement
Total questions: 27
Worksheet time: 14mins
Working Capital formula?
Current assets-current liabilities
Current assets-non current liabilities
stock +prepaid expense
Preferable Current ratio
2:1
3:2
1:4
4:1
Proprietary ratio
Equity/total assets
total assets/Dept
equity/dept
dept/equity
what is the definition of capital employed for public limited companies?
Equity Capital + Reserves
Equity capital+ PSC + Reserves
Equity capital+PSC+Reserves+NCL
Equity Capital only
The _________ is a measure of liquidity which excludes _______, generally the least liquid asset:
Current ratio, trade receivable
Liquid ratio, trade receivable
Current ratio, inventory
acid test ratio, inventory
The _________ of business firm is measured by its ability to satisfy its short term obligations as they become due:
Activity
Liquidity
profitability
Solvency
What Accounting Ratio Category does Debts to Assets Ratio fall into?
Profitability
Liquidity
Efficency
Capital Structure
Average inventoryCost of goods sold is the formula for?
Inventory turnover
Debtors turnover
Inventory cost
Inventory ratio
Which of the following is not operating expenses?
(A) Office Expenses
(B) Selling Expenses
(C) Bad Debts
(D) Loss by Fire
Cost of Revenue from Operations =
(A) Revenue from Operations – Net Profit
(B) Revenue from Operations – Gross Profit
(C) Revenue from Operations – Closing Inventory
(D) Purchases – Closing Inventory
If the inventory turnover ratio is divided into 365, it becomes a measure of
(A) Sales efficiency
(B) Average Age of Inventory
(C) Sales Turnover
(D) Average Collection Period
Which ratio reflects the firm's efficiency in utilizing its assets in generating sales?
Ratios to Judge the Financial Position
General Profitability Ratios
Turnover/Efficiency Ratios
Liquidity Ratios
What is the main purpose of the ratio analysis?
To evaluate the financial strengths and weaknesses of the firm
To determine market share
To predict future financial performance
To calculate current liabilities
A Cash Flow Statement is similar to the
Balance Sheet
Income Statement
Budget
Statement of Receipts and Payments
Which of the following is a cash outflow from investing activities?
Purchase of equipment
Issuance of shares
Payment of dividends
Receipt of loan
Which section of the Cash Flow Statement includes cash received from customers?
Operating activities
Investing activities
Financing activities
Non-operating activities
Which activity is considered a financing activity in the Cash Flow Statement?
Issuing shares
Purchasing inventory
Selling equipment
Paying salaries
Which of the following is a cash inflow from operating activities?
Sale of a building
Interest received
Issuance of bonds
Payment of taxes
Which section of the Cash Flow Statement includes cash paid to suppliers?
Operating activities
Investing activities
Financing activities
Non-operating activities
selling an asset would be an example of
cash inflow
cash outflow
Issuance of new ordinary shares is categorized under ______ activities in the cash flows
Operating
Investing
Financing
Choose the correct title for Cash Flows Statement
Statement of the Cash Flows for the year ended 31 December 2018
Statement of the Cash Flows as at 31 December 2019
Identify one example of cash and cash equivalents?
Payment of dividend
Marketable securities
Issuance of new shares
Purchase of furniture
