Free Printable Profitability Measurement Quiz

1.

What is the formula for calculating the gross profit margin?

a)

$\frac{\text{gross profit}}{\text{cost of sales}} \times 100$

b)

$\frac{\text{gross profit}}{\text{revenue}} \times 100$

c)

$\frac{\text{profit}}{\text{revenue}} \times 100$

d)

$\frac{\text{profit}}{\text{capital employed}} \times 100$

2.

How do you calculate the mark-up percentage?

a)

$\frac{\text{gross profit}}{\text{revenue}} \times 100$

b)

$\frac{\text{profit}}{\text{revenue}} \times 100$

c)

$\frac{\text{gross profit}}{\text{cost of sales}} \times 100$

d)

$\frac{\text{profit}}{\text{capital employed}} \times 100$

3.

Which formula is used to calculate the profit margin?

a)

$\frac{\text{profit}}{\text{revenue}} \times 100$

b)

$\frac{\text{gross profit}}{\text{revenue}} \times 100$

c)

$\frac{\text{gross profit}}{\text{cost of sales}} \times 100$

d)

$\frac{\text{profit}}{\text{capital employed}} \times 100$

4.

What is the formula for return on capital employed (ROCE)?

a)

$\frac{\text{profit}}{\text{revenue}} \times 100$

b)

$\frac{\text{gross profit}}{\text{revenue}} \times 100$

c)

$\frac{\text{profit}}{\text{capital employed}} \times 100$

d)

$\frac{\text{gross profit}}{\text{cost of sales}} \times 100$

5.

How is profit for the year calculated?

a)

Revenue – cost of sales

b)

Revenue – cost of sales – expenses

c)

Revenue – expenses

d)

Revenue – cost of sales + expenses

6.

What is the formula for capital employed using total assets and current liabilities?

a)

Total assets + current liabilities

b)

Total assets – current liabilities

c)

Total assets × current liabilities

d)

Total assets ÷ current liabilities

7.

How can capital employed be calculated using non-current liabilities and total equity?

a)

Non-current liabilities – total equity

b)

Non-current liabilities + total equity

c)

Non-current liabilities × total equity

d)

Non-current liabilities ÷ total equity

8.

If a company has a gross profit of £50,000 and revenue of £200,000, what is the gross profit margin?

a)

20%

b)

25%

c)

30%

d)

35%

9.

A business has a gross profit of £30,000 and cost of sales of £100,000. What is the mark-up percentage?

a)

20%

b)

25%

c)

30%

d)

35%

10.

If a company has a profit of £40,000 and revenue of £160,000, what is the profit margin?

a)

20%

b)

25%

c)

30%

d)

35%

11.

A company has a profit of £60,000 and capital employed of £300,000. What is the ROCE?

a)

15%

b)

20%

c)

25%

d)

30%

12.

If a company has total assets of £500,000 and current liabilities of £200,000, what is the capital employed?

a)

£200,000

b)

£300,000

c)

£400,000

d)

£500,000

13.

A business has non-current liabilities of £150,000 and total equity of £250,000. What is the capital employed?

a)

£350,000

b)

£400,000

c)

£450,000

d)

£500,000

14.

If a company has a revenue of £250,000, cost of sales of £150,000, and expenses of £50,000, what is the profit for the year?

a)

£40,000

b)

£50,000

c)

£60,000

d)

£70,000

15.

A company has a gross profit margin of 40% and revenue of £500,000. What is the gross profit?

a)

£150,000

b)

£200,000

c)

£250,000

d)

£300,000

16.

What is the formula for calculating net profit margin?

a)

$\frac{\text{net profit}}{\text{revenue}} \times 100$

b)

$\frac{\text{gross profit}}{\text{revenue}} \times 100$

c)

$\frac{\text{net profit}}{\text{cost of sales}} \times 100$

d)

$\frac{\text{profit}}{\text{capital employed}} \times 100$

Profitability Measurement Quiz

Total questions: 16

Worksheet time: 8mins

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