Each question carries ONE (1) mark.Choose the best alternative answer.

1.In Ratio Analysis, the term Capital Employed refers to_____________________.

A.Equity Share Capital,

B.Net worth,

C.Shareholders' Funds,

D.None of the above.

2.A Current Ratio of Less than one means_________________

A.Current Liabilities < Current Assets,

B.Fixed Assets > Current Assets,

C.Current Assets < Current Liabilities,

D.Share Capital > Current Assets.

3.Gross Profit Ratio for a firm remains the same but the Net Profit Ratio is decreasing. The reason for such a situationcould bean/a __________________

A.Increase in costs of goods sold

B.Increase in expenses

C.Increase in dividend

D.Decrease in sales.

4.Return on assets and return on investment ratios are classified as________________.

A.Liquidity ratios.

B.Profitability ratios.

C.Solvency ratios.

D.Turnover.

5.A company has the following non-current assets:20152016Non-current assets at closing net book valueP200 000P250 000Depreciation for 2016income statement is P30 000. No disposals were made in the period.What is the correct figure for cash purchases of non-current assets during 2016?AP50 000BP20 000CP250 000DP800006.Organisations often use debt collection agencies because ________________________.

A.Debt collection agencieshave more powers than ordinary companies.

B.Debt collection agencies can place customers on stopwith all other suppliers inthe sector.

C.Debt collection agencies have a right to seize goods from customer

D.Debt collection agencies get results because customers take more notice and are more likely to pay.

7.Which one of the following is notan investment ratio?

A.Earnings per share

B.Price earnings ratio

C.Return on equity

D.Capital gearing ratio

8.Which of the following are allmoney market instruments?

A.Bills, certificates of deposit and deposits

B.Cheques, certificates of deposits, deposits

C.Cash, cheques and bills

D.Bills, certificates of deposits and cash

9.A __________________ is a market where financial securities are traded for the first time.

A.Spot market

B.Primary market

C.Capital market

D.Secondary market

10.If a company uses the Economic Order Quantity as the level at which to order, how will they calculate total ordering costs for the year?

A.Cost per order x (Annual Demand / EOQ)

B.Annual Demand x (Cost per order /EOQ)

C.(EOQ / Cost per order) x Holding costs

D.Annual demand x EOQ