At the end of the last financial year. your company's current assets were 81 million and its current liabilities were 75 million.

At the end of the previous financial year, your company's current assets had been 72 million and its current liabilities had been 62 million.

How would you describe your company's current ratio at the end of the last financial year, compared with the end of the previous year.

Select one:

a. Better than the previous year

b. Higher than the previous year

c. Lower than the previous year

d. Worse than the previous year

You have bought a magnetic resonance imaging (MRI) scanner for 1,250,000.

You expect its residual value when you dispose of it to be 170,000.

The annual depreciation on a straight line basis will be 135,000.

What will the second year's depreciation be using Rule of 78?

Select one:

a. 60,000

b. 135,000

c. 210,000

d. 270,000

You have a 5-year-old lorry, on which depreciation is calculated on a reducing balance basis.At the start of this year, its net book value was 116,000. The depreciation on the lorry for this year will be 29,000.

What will the depreciation on the lorry be next year?

Select one:

a. 21,750

b. 23,200

c. 34,800

d. 87,000

What is the matching principle?

Select one:

a. Charitable organisations' income must equal their expenditure.

b. Liquid assets must at least equal current liabilities.

c. Liquid assets must at least equal non-current assets.

d. Expenditure must be reported in the same financial period as the revenue it was used to generate.

Clark Casc plc's revenue for last year was 178 million, their cost of sales was 104 million, their distribution costs were 10 million, their administrative expenses were 21 million, their finance costs were 3 million, they had no finance income, the corporation tax on their profit was 8 millionand they paid a dividend of 11 million.

What was their gross profit?

Select one:

a. 21 million

b. 32 million

c. 43 million

d. 74 million.

You have drawn up your company's balance sheet as at the end of the financial year and found that your total assets are 110 million, that your total liabilities are 35 million and that your total equity is 85 million.

What does this indicate.

Select one:

a. You have a gearing ratio of 77%

b. You have a return on capital employed of 41%

c. You have made a mistake

d. You have net assets of 25 million

Scylace plc's opening inventory for the year is 21 million and their closing inventory is 26 million. Scylace's revenue for the year is 256 million and their cost of sales for the year is 199 million.

Calculate Scylace's inventory turnover period for the year in days.

Select one:

a. 8.47 days

b. 33.51 days

c. 37.70 days

d. 43.10 days

What name is given to the analysing of Return on Shareholders' Equity using Turnover of Capital Employed, Operating Margin and Gearing?

Select one:

a. Acid Test

b. Donaldson Brown Analysis

c. Du Pont Analysis

d. Solow-Swan Model

You are given the following information for Noughts plc and Crosses plc for the end of the last financial year.

	Noughts plc	Crosses plc
	million	million
Non-Current Assets	45	66
Current Assets	12	8
Current Liabilities	(16)	(5)
Non-Current Liabilities	(10)	(26)
Shareholder's Equity	31	43

You are informed that Noughts plc's Book Gearing at the year end for which figures are given was 83.87% (to 2 decimal places).

You have been asked to calculate a figure for Book Gearing for Crosses plc which is directly comparable with the figure for Noughts plc.

Select one:

a. 37.68%

b. 41.89%

c. 72.09%

d. 160.00%

Which of the following ratios is not used in calculating the Cash Conversion Cycle as described by Cagle, Campbell and Jones?

Select one:

a. Gross Profit Margin

b. Inventory Turnover Period

c. Payables Turnover Period

d. Receivables Turnover Period