Accounting & Finance questions with
actual answers.
Ratio analysis ANS -involves the methods of calculating and interpreting financial ratios to analyse and
monitor the companies performance.
Stock Turnover Ratio = ANS -Cost of Sales/Average Stock
Current Ratio ANS -Current Assets/ Current Liabilities
ROCE ANS -Net Profit/Capital Employed
Net Profit ANS -Net Profit/Sales Revenue
Gross Profit ANS -Gross Profit/Sales Revenue
Break-Even is ANS -Company goes from making a loss to making a profit.
Fixed Costs ANS -Costs you pay even when no sales are made.
Vairable Costs ANS -Costs which vary depending on output.
Total Cost (Break-even) ANS -Fixed Cost + Vairable Cost
Creditors ANS -Those to whom the firm owes money for goods or services it has had but not yet paid
for.
Debtors ANS -People who owe your company money/
actual answers.
Ratio analysis ANS -involves the methods of calculating and interpreting financial ratios to analyse and
monitor the companies performance.
Stock Turnover Ratio = ANS -Cost of Sales/Average Stock
Current Ratio ANS -Current Assets/ Current Liabilities
ROCE ANS -Net Profit/Capital Employed
Net Profit ANS -Net Profit/Sales Revenue
Gross Profit ANS -Gross Profit/Sales Revenue
Break-Even is ANS -Company goes from making a loss to making a profit.
Fixed Costs ANS -Costs you pay even when no sales are made.
Vairable Costs ANS -Costs which vary depending on output.
Total Cost (Break-even) ANS -Fixed Cost + Vairable Cost
Creditors ANS -Those to whom the firm owes money for goods or services it has had but not yet paid
for.
Debtors ANS -People who owe your company money/
