State the following statement True or False.
Ratios help in comparisons of a firm’s results over a number of accounting periods as well as with other business enterprises.
Chapter 22 Profitability and liquidity ratios
Quiz
•
Business
•
10th - 11th Grade
•
Hard
grayce lim
Used 52+ times
FREE Resource
22 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
State the following statement True or False.
Ratios help in comparisons of a firm’s results over a number of accounting periods as well as with other business enterprises.
True
False
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
State the following statement True or False.
A ratio reflects quantitative and qualitative aspects of results.
True
False
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The _________ of business firm is measured by its ability to satisfy its short term obligations as they become due.
Activity
Liquidity
profitability
Solvency
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The two basic measures of liquidity are:
inventory turnover and current ratio
current ratio and liquid ratio
gross margin and profit margin
current ratio and trade receivables turnover
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The _________ is a measure of liquidity which excludes _______, generally the least liquid asset.
Current ratio, trade receivable
Liquid ratio, trade receivable
Current ratio, inventory
Liquid ratio, inventory
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What ratio shows how well a business can turn revenue into gross profit?
Net profit margin
Gross profit margin
Current ratio
Acid test ratio
7.
MULTIPLE SELECT QUESTION
30 sec • 1 pt
Which of the following statements are correct? (you should select two only!)
Nairobi Press Ltd's gross profit margin = 40%
Nairobi Press Ltd's net profit margin= 25%
Nairobi Press Ltd's gross profit margin = 50%
Nairobi Press Ltd's net profit margin = 20%
22 questions
Gross & Net profit practice
Quiz
•
10th - 12th Grade
20 questions
Business managements Multiple Choice Questions
Quiz
•
9th - 12th Grade
20 questions
3.5 Profitability & liquidity ratio analysis Quiz
Quiz
•
11th Grade
20 questions
Statement of Financial Position - Classifications
Quiz
•
10th Grade
20 questions
Accounting Fundamentals- jc1 business
Quiz
•
11th Grade
20 questions
11BST Prelim Multiple Choice 2017
Quiz
•
11th Grade
25 questions
IB Business Management - 3.5 Profitability and Liquidity Ratios
Quiz
•
9th Grade - University
20 questions
Accounting Concepts and Ratios
Quiz
•
11th Grade
25 questions
Equations of Circles
Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)
Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System
Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice
Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers
Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons
Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)
Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review
Quiz
•
10th Grade