Ratio Analysis

Multiple choice test about Ratio Analysis

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1. What do Profitability Ratios do?

  • measure the profitability of the business over the past quarter
  • measure the efficiency of the business in terms of the use of its resources in generating sales.
  • measure the profit made over the past year
  • measure the proportion of the capital of the business which has come from external sources, and must be repaid with interest.
  • measure the strength of the company, its share price and its dividends.
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Other questions in this quiz

2. What do financial efficiency Ratios do?

  • measure the strength of the company, its share price and its dividends.
  • measure the efficiency of the business in terms of the use of its resources in generating sales.
  • measure the profit made over the past year
  • measure the proportion of the capital of the business which has come from external sources, and must be repaid with interest.

3. 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.
  • measure the profitability of the business
  • measure the strength of the company, its share price and its dividends.
  • measure the profit made over the past year

4. What does the acid test do?

  • Measure the financial efficiency
  • Measure the competitors profit
  • Measure the liquidity
  • Measure the profitability

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

  • measure how much of the original investment the shareholders is being paid back
  • measure the strength of the company, its share price and its dividends.
  • measure the amount of money per dividend

Comments

Griffin Dickinson

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Very well made test

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