QUESTION 14

1.The formula for gross profit margin is gross profit divided by:

sales.

total assets.

total equity.

share capital + long-term loans.

QUESTION 15

1.Dollar Ltd has a current ratio of 2:1. This means that:

there is $2 of current assets for every $1 of current liabilities.

its current assets are half its current liabilities.

its current assets are insufficient to meet its current liabilities.

its current assets are equal to its current liabilities.