Exam 8: Analysis and Interpretation of Financial Statements

The return on assets is a profitability ratio that measures the:

In a vertical analysis of an income statement,the 100% figure would be

Which statement is not correct?

Capital structure ratios are also known as:

Morgan Trading Pty Ltd has the following balance sheet figures;the debt to equity ratio is: \ Current assets 500000 Current liabilities 150000 Non-current assets 20000 Noncurrent liabilities 50000

The asset turnover ratio is calculated by dividing

If average inventory is $49 500,credit sales $820 000 and cost of sales $630 000 inventory turnover in days is:

Profit is $109 000,after deducting interest of $11 000 and average total assets are $650 000.Return on assets to assess profitability from a management view point is:

It is only necessary to calculate ________ version of the many variations of the gearing ratios.

Which of these is not considered to be a market performance ratio?

Vertical analysis is also known as:

All of these are efficiency ratios,except:

If the debtors turnover ratio changes from 45 days to 40 days this indicates that:

____________________ analysis is a technique for evaluating a series of financial statement data over a period of time.

_____________ analysis expresses each item in a financial statement as a percentage of a base amount.

The current ratio is also known as the:

If creditors allow 30 days from the date of purchase before requiring payment,it takes,on average 40 days to sell inventory,and debtors take,on average,45 days to pay their accounts,the length of the cash cycle is:

Westbury Pty Ltd has a current ratio of 2 to 1 and current liabilities of $22 000.If Westbury Pty Ltd has $10 000 of inventory,the quick asset ratio is:

If the stock market price of a share on 30 June is $12 and the earnings per share for the year are 65c,the price-earnings ratio at 30 June is:

Which of the following categories of ratios is not relevant to all business entities?