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Business Decision Making Areas II: Finance
What is the correct formula for gross profit percentage ratio?
Gross profit x net sales x 100%
Gross profit x 100%
Gross profit / net sales x 100%
Which of the following are not ways to improve the gross profit percentage?
Raise selling price
Reduce cost of goods
What is the ideal ratio for the current ratio?
The name given to opening stock and closing stock / 2 is...
Rate of stock
Return of stock
What is the ideal ratio for acid test ratio?
The acid test ratio is an example of which type of ratio?
Which of these is NOT an advantage of ratios?
Ratios monitor issues
Ratios compare performance
Ratios are historic
If the current ratio is high, what is main problem facing a firm?
Too much money tied up in stock
High staff turnover
Rate of stock turnover is an example of which ratio?
Which ratio is often used by venture capitalists?
Net profit percentage
Return on capital employed
Acid test ratio