Learning Outcome 7 Analyse businesses using financial ratios Chapter 9 Flashcards Preview

M92MCQ > Learning Outcome 7 Analyse businesses using financial ratios Chapter 9 > Flashcards

Flashcards in Learning Outcome 7 Analyse businesses using financial ratios Chapter 9 Deck (4)
Loading flashcards...
1

Profit divided by share capital plus reserves plus borrowings equals...?
A. Gross profit percentage ratio
B. Net profit percentage ratio
C. Return on capital employed
D. The current ratio




C. Return on capital

2

The quick ratio measures...?
A. Liquidity
B. Solvency
C. Efficiency
D. Productivity




A. Liquidity

3

What is a good figure for the gearing ratio (depending on the business)?
A. 0-10%
B. 20-50%
C. 80-110%
D. 100%+




C. 80-110%

4

The solvency ratio of an insurance company is calculated as:
A. Assets less liabilities
B. Assets plus liabilities
C. Net assets divided by net liabilities
D. Net assets divided by earned premium net of reinsurance




D. Net assets divided by earned premium net of reinsurance