Ratios (Grade 10 NSC Matric Accounting): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is step 4 in the five-step ratio analysis process?
What is step 4 in the five-step ratio analysis process?
Compare with previous years
A 25% mark-up on cost of sales equals what percentage mark-up on sales?
A 25% mark-up on cost of sales equals what percentage mark-up on sales?
20%
Which problem may cause gross profit % on turnover to differ from expectations?
Which problem may cause gross profit % on turnover to differ from expectations?
Theft of stock
For operating profit on turnover, what does a lower percentage indicate?
For operating profit on turnover, what does a lower percentage indicate?
Better expense management
Net profit % should be approximately what proportion of gross profit %?
Net profit % should be approximately what proportion of gross profit %?
Half
What is the typical healthy range for the current ratio?
What is the typical healthy range for the current ratio?
1.5:1 to 2:1
Why are inventories excluded from the acid test ratio calculation?
Why are inventories excluded from the acid test ratio calculation?
Cannot be quickly converted to cash
What is the minimum solvency ratio for a business to be considered solvent?
What is the minimum solvency ratio for a business to be considered solvent?
1:1
A debt/equity ratio of 0.7:1 indicates what type of business?
A debt/equity ratio of 0.7:1 indicates what type of business?
Low-risk, favourably geared
What does return on owners' equity enable owners to compare?
What does return on owners' equity enable owners to compare?
Business return vs alternative investments