Financial Accounting

1Cost of sales GH¢60,000 and average inventory GH¢10,000 give an inventory turnover of

2The acid test (quick) ratio excludes

3Gross profit GH¢20,000 on sales of GH¢80,000 gives a gross profit margin of

4Credit sales GH¢120,000; average receivables GH¢20,000. The receivables collection period is about

5Net profit GH¢12,000 on sales of GH¢60,000 gives a net profit margin of

6Current assets are GH¢40,000 and current liabilities GH¢20,000. What is the current ratio?

7Gross profit is GH¢8,000 on sales of GH¢40,000. What is the gross profit margin?

8A current ratio of 2 : 1 means current assets are

9A gearing ratio above 50% indicates that a company

10Current assets GH¢30,000 (inventory GH¢12,000); current liabilities GH¢15,000. The acid test ratio is