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Profitability and Ratio Analysis
The purpose of ratio analysis is not
Ratios are compared in how many ways?
Profitability and Ratio Analysis
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Answers
1
Ratios are compared in how many ways?
2.2
1
2
3
2
The purpose of ratio analysis is
not
examine a firm's financial position
decision making Ỡ
comparing actual figures with projected figures
to please debtors
3
_________ ratios look at the ability of a firm to pay its short term liabilities.
gas
aqueous
solid
liquidity
4
Ratio Analysis is
Quantitative
not useful
Boring
Qualitative
5
Which of the following has no interest in using Ratio Analysis?
Pressure Groups
Employees and Trade Unions
Local Community
Financiers
6
Ratios are a ___________________________________ account of a firm's performance.
9
accurate representation of the
future
historical
7
______ test ratio ignores stock when measuring the short term liquidity of a business.
Acid
Not Current
Base
Current
8
What does ROCE stand for?
Revenue Opportunities Come Easily
Revise Orders Consistently Everyday
Rainbows Over Clouds Elephants ȹ
Return on Capital Employed
9
NPM stand for
Neutral Profit Margin
Net Profit Margin
New Profit Margin
Not Profit Margin
10
True or False: There is no universal way to report company accounts.
True-False
False
Not False
True
11
GPM Ratio can be improved by
hiring more staff
reducing direct costs
raising revenue
lowering the selling price of products