Other questions in this quiz

2. What is the correct formula for Receivables Collection Period?

  • Revenue - Variable cost / Profit X 100%
  • Trade receivables / Revenue X 365 days
  • Inventory / Cost of goods sold X 365 days
  • Net assets attributable to ordinary shareholders / Number of ordinary shares in issue

3. What is the correct formula for Debt to Equity?

  • Net dividend per share / Market price per share X 100%
  • Interest bearing debt + Preference share capital / Shareholders equity X 100
  • Operating profit + Interest receivables + other income receivables / Interest payable
  • Net assets attributable to ordinary shareholders / Number of ordinary shares in issue

4. What is the correct formula for Operating Profit Margin?

  • Operating profit / Revenue X 100%
  • Operating profit + Interest receivables + Other income receivables / Interest payable
  • Trade receivables / Revenue X 365 days
  • Revenue - Variable cost / Profit X 100%

5. What is the correct formula for Current Ratio?

  • Current assets / Current Liabilities
  • Current assets - Inventory / Current liabilities
  • Earnings attributable to ordinary shareholders / Number of ordinary shares
  • Share price / Net asset value per share

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