ACC419
Current assets used in the production process and held by the firm are called
Answer: inventory
The acid test ratio equals current assets minus divided by
Answer: inventory; current liabilities
Financial ratios can be classified into four major groups:
Answer: liquidity, profitability, leverage and turnover
Asset Turnover is measured by :
Answer: sales/ capital employed
Price earnings ratio is calculated as:
Answer: stock price/eps
Using the information above, calculate the price-earnings ratio.
Answer: 10 times
Operating cash flow ratio is measured by
Answer: cash flow from operations/current liabilities
Which of the following is not a profitability ratio?
Answer: return on profit
Working capital turnover is measured as: Answer: sales/average working capital
Follow me on Twitter @louisoladimeji for your free exam summary and free past questions
Whatsapp: 08039407882 for your Project Writeup I Business Plan Writeup I Online Tutorial
