Ratio Analysis

Multiple choice test about Ratio Analysis

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What do Profitability Ratios do?
measure the profit made over the past year
1 of 6
What do financial efficiency Ratios do?
measure the efficiency of the business in terms of the use of its resources in generating sales.
2 of 6
What do Gearing Ratios do?
measures the proportion of the capital of the business which has come from external sources, and must be repaid with interest.
3 of 6
What does the acid test do?
Measure the liquidity
4 of 6
Shareholder's Ratios... What do they do?
measure the strength of the company, its share price and its dividends.
5 of 6
What do Liquidity Ratios do?
measure the solvency of the business and its ability to meet short-term debts.
6 of 6

Other cards in this set

Card 2

Front

What do financial efficiency Ratios do?

Back

measure the efficiency of the business in terms of the use of its resources in generating sales.

Card 3

Front

What do Gearing Ratios do?

Back

Preview of the front of card 3

Card 4

Front

What does the acid test do?

Back

Preview of the front of card 4

Card 5

Front

Shareholder's Ratios... What do they do?

Back

Preview of the front of card 5
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Comments

Griffin Dickinson

Report

Very well made test

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