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3.5 Profitability and Ratio Analysis Flashcards | StudBud
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3.5 Profitability and Ratio Analysis
Ratios are compared in how many ways?
NPM stand for
3.5 Profitability and Ratio Analysis
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Questions
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Answers
1
NPM stand for
Not Profit Margin
Net Profit Margin
New Profit Margin
Neutral Profit Margin
2
Ratios are compared in how many ways?
1
3
2.2
2
3
______ test ratio ignores stock when measuring the short term liquidity of a business.
Current
Not Current
Base
Acid
4
Krusty Krab Pizza
you
is the pizza
for
and me
5
_________ ratios look at the ability of a firm to pay its short term liabilities.
solid
aqueous
gas
liquidity
6
Which of the following has no interest in using Ratio Analysis?
Pressure Groups
Financiers
Employees and Trade Unions
Local Community
7
What does ROCE stand for?
Revise Orders Consistently Everyday
Rainbows Over Clouds Elephants ȹ
Revenue Opportunities Come Easily
Return on Capital Employed
8
Ratio Analysis is
Boring
Qualitative
not useful
Quantitative
9
GPM Ratio can be improved by
reducing direct costs
raising revenue
hiring more staff
lowering the selling price of products
10
Ratios are a ___________________________________ account of a firm's performance.
accurate representation of the
9
historical
future
11
The purpose of ratio analysis is
not
to please debtors
examine a firm's financial position
decision making Ỡ
comparing actual figures with projected figures
12
True or False: There is no universal way to report company accounts.
True
Not False
False
True-False