➡️QUESTION⬅️

A business's sales are $100 000, the expenses are $30000 and the profit for the year is $20 000.

What is the gross profit/sales ratio?

A 10%
B 50%
C 70%
D 80%

ANSWER B



➡️QUESTION⬅️

What is not included when calculating the quick ratio (acid test ratio)?
A bank overdraft
B inventory
C short-term bank loan
D trade receivables

ANSWER B



➡️QUESTION⬅️

A business provided the following information about its percentage of gross profit to sales.

Year1: 40%
Year2: 38%
Year3: 35%

What could explain the changes in the percentage of gross profit to sales?

A Cost of sales is decreasing.
B Expenses are decreasing.
C Quantity of goods sold is decreasing.
D Selling price is decreasing.


ANSWER D