1. When analyzing the return on capital employed (ROCE), which of the following would make the analysis less informative? 1. The company has large unused cash reserves 2. The company's debt balances are significantly larger than its equity

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 or 2

2. When calculating the tangible net worth of a company which of the following are usually deducted in arriving at the number to be used? 1. Intangible assets 2. Prepayments 3. Current assets

A) Intangible assets and prepayments

B) Intangible assets and current assets

C) Prepayments and current assets

D) We need to deduct them all

3. What format approach is being used for the Statement of profit or loss when costs are allocated between selling, general and administration?

A) Costs allocated by function

B) Costs allocated by nature

C) Costs allocated between current and non-current

D) Costs allocated by location

4. ) If an entity adopts best practice for negative external goodwill and research costs what is the likely impact on the current year reported profits?

A)Reported profits will be unaltered

B)Reported profits will increase

C)Reported profits will decrease

D)This cannot be determined as negative goodwill increases profits but research costs are expensed thereby reducing profits

5. If a company has a gross profit margin of 20% and inventory turnover is 3 what is the figure for inventory days (to the nearest whole day)?

A)1,095 days

B)122 days

C)97 days

D) 92 days