WorksheetsRatio Analysis and Funds Flow Statement Quiz
Total questions: 20
Worksheet time: 10mins
Current Ratio is calculated as:
Current Assets ÷ Current Liabilities
Current Liabilities ÷ Current Assets
Total Assets ÷ Current Liabilities
Current Assets ÷ Total Assets
Ideal Current Ratio is:
1 : 1
2 : 1
3 : 1
1.5 : 1
Quick Ratio is also known as:
Liquidity Ratio
Solvency Ratio
Acid Test Ratio
Profitability Ratio
Which of the following is excluded from Quick Assets?
Cash
Debtors
Inventory
Bank Balance
Gross Profit Ratio is calculated as:
Gross Profit ÷ Sales × 100
Net Profit ÷ Sales × 100
Gross Profit ÷ Capital × 100
Sales ÷ Gross Profit × 100
Which ratio measures long-term financial stability?
Current Ratio
Quick Ratio
Debt-Equity Ratio
Stock Turnover Ratio
Stock Turnover Ratio shows:
Liquidity position
Profitability
Speed of stock movement
Capital structure
Net Profit Ratio is useful for measuring:
Liquidity
Operational efficiency
Solvency
Stock management
Which ratio indicates efficiency of capital employed?
Current Ratio
Return on Capital Employed
Debt Ratio
Proprietary Ratio
Ratio analysis is based on information from:
Cash Book
Journal
Financial Statements
Trial Balance
Funds Flow Statement shows changes in:
Cash only
Working Capital
Profit only
Total assets
Funds Flow Statement is prepared from:
Profit & Loss Account
Balance Sheet
Balance Sheets of two dates
Cash Account
Increase in current assets results in:
Source of funds
Application of funds
No effect
Profit
Issue of shares is treated as:
Application of funds
Loss
Source of funds
Expense
Purchase of fixed assets is:
Source of funds
Application of funds
Current asset
Current liability
Decrease in working capital means:
Application of funds
Source of funds
No change
Loss
Funds Flow Statement does not include:
Non-current assets
Working capital changes
Cash transactions only
Long-term liabilities
Which of the following is a non-current liability?
Creditors
Bills Payable
Bank Overdraft
Debentures
Operating profit is calculated for:
Cash Flow Statement
Funds Flow Statement
Balance Sheet
Trial Balance
Funds Flow Statement helps in analyzing:
Short-term liquidity only
Long-term financial position
Daily cash balance
Stock valuation
