Interpretation of Accounts (Ratio Analysis) (Leaving Cert Accounting): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What return should ROCE exceed to justify business risk?
What return should ROCE exceed to justify business risk?
Risk-free rate (2-4%)
What is the recommended current ratio range?
What is the recommended current ratio range?
1.5 to 2:1
What does the acid test ratio exclude from current assets?
What does the acid test ratio exclude from current assets?
Closing stock
At what percentage is a company considered highly geared?
At what percentage is a company considered highly geared?
Over 50%
What is the formula for ROSF?
What is the formula for ROSF?
What does higher stock turnover indicate?
What does higher stock turnover indicate?
Better stock management
What does higher interest cover indicate?
What does higher interest cover indicate?
Lower financial risk
What do shareholders primarily focus on?
What do shareholders primarily focus on?
Dividends, profitability, liquidity
What does higher dividend cover show?
What does higher dividend cover show?
More funds for reinvestment
What is a key limitation of ratio analysis?
What is a key limitation of ratio analysis?
It analyses past performance only