Analysis and Interpretation of Financial Statements (Grade 12 NSC Matric Accounting): Quizzes
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Practise the questions
10 questions from this quiz
What are the five main areas of financial analysis?
What are the five main areas of financial analysis?
Profitability, Liquidity, Solvency, Return, Gearing
What does profitability analysis measure?
What does profitability analysis measure?
How efficient a company is in operations
What is the difference between mark-up and margin?
What is the difference between mark-up and margin?
Mark-up is % of cost, margin is % of sales
What is the formula for the current ratio?
What is the formula for the current ratio?
What current ratio generally indicates good liquidity?
What current ratio generally indicates good liquidity?
Above 2:1
What is step 2 of the four-step approach to commenting on financial indicators?
What is step 2 of the four-step approach to commenting on financial indicators?
Name indicators with actual figures/ratios
What is the formula for the acid test ratio?
What is the formula for the acid test ratio?
What does solvency analysis measure compared to liquidity?
What does solvency analysis measure compared to liquidity?
Ability to pay all debts, not just short-term
From which financial statement do profit figures come?
From which financial statement do profit figures come?
Income statement
What does a lower debt to equity ratio indicate?
What does a lower debt to equity ratio indicate?
Less financial risk