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1. Which is the right formula for break-even?
A
Break-even = quantity sold x selling price
B
Break-even = fixed costs/quantity sold
C
Break-even = fixed costs/contribution
2. Which of these financial ratios measures profitability?
A
Inventory turnover
B
ROCE
C
Liquid capital ratio
3. How do you calculate sales revenue?
A
Quantity sold x selling price
B
Variable costs x quantity sold
C
Fixed costs + variable costs
4. How do you calculate cost of goods sold?
A
Fixed costs + variable costs
B
Gross profit - expenses
C
(Opening stock +purchases) - closing stock
5. Which is the right formula for gross profit?
A
Sales revenue - cost of goods sold
B
Sales revenue - expenses
C
Cost of goods sold - fixed costs
6. (Opening stock+purchases) - closing stock
A
Inventory turnover
B
Total costs
C
Cost of goods sold
7. Which is the right formula for net profit?
A
Gross profit - expenses
B
Sales revenue - expenses
C
Cost of good sold - expenses
8. Opening balance in a cash flow forecast
A
Closing balance of the month before
B
Opening balance + net cash flow
C
Total inflows - total outflows
9. Which type of formula measures the ability of the business to pay its bills?
A
Efficiency ratios
B
Liquidity ratios
C
Profitability ratios
10. Which of these financial ratios measures how well the business is being managed?
A
Liquidity
B
Efficiency
C
Profitability