Financial Ratios (HSC SSCE Business Studies): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
Which type of analysis compares figures over 3-5 years to identify long-term patterns?
Which type of analysis compares figures over 3-5 years to identify long-term patterns?
Trend analysis
If current assets are £300,000 and current liabilities are £150,000, what is the current ratio?
If current assets are £300,000 and current liabilities are £150,000, what is the current ratio?
2:1
What current ratio is generally accepted as indicating a sound financial position?
What current ratio is generally accepted as indicating a sound financial position?
2:1
What formula calculates the debt to equity ratio?
What formula calculates the debt to equity ratio?
Total liabilities ÷ Total equity
Which type of business cannot use the gross profit ratio?
Which type of business cannot use the gross profit ratio?
Service businesses
Which ratio gives a more accurate indication of profitability?
Which ratio gives a more accurate indication of profitability?
Net profit ratio
What minimum return on equity do most investors generally want?
What minimum return on equity do most investors generally want?
10%
What does a high accounts receivable turnover ratio indicate?
What does a high accounts receivable turnover ratio indicate?
Efficient debt collection
What does solvency measure?
What does solvency measure?
Long-term financial commitments
What is the process of comparing results against industry standards called?
What is the process of comparing results against industry standards called?
Benchmarking