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analysis 3

accounting

  1.  
    The interest rate on the loan has gone up. This will impact on
    A. finance costs only B. admin expenses and finance costs C. finance costs and net profit D. finance costs and gross profit
  2.  
    calculate return on equity: Average equity is $75000, net profit is $25000
    A. 34% B. 33.33% C. 0.33% D. 500% E. 3.33%
  3.  
    If the business makes a loss, Average equity will
    A. increase B. not change C. impossible to know D. decrease
  4.  
    a business invests in customer service training for it's staff. This should lead to
    A. increase in sales only B. increase in sales and decrease in COGS C. an increase in sales, gross profit,and net profit D. increase in admin costs only E. increase in sales and net profit
  5.  
    Sales is $100 000 and finance costs is $5500. Finance cost % is...
    A. 0.55% B. 6% C. 55% D. 5.5% E. 60%
  6.  
    which of the following is NOT a reason for an increase in finance cost%
    A. loan is increased and interest rates stay the same B. interest rates increase and loan stays the same C. owner invests cash to pay off some of the loan D. Loan is decreased and interest rates go down
  7.  
    Average inventory is $40 000. Sales is $200000 and Gross profit is $100000.calculate inventory turnover
    A. 2.5 days B. 146 days C. 25 days D. 14.6 days E. 145 days
Answer Key
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analysis 3 (Answer Key)

accounting

  1.  
    The interest rate on the loan has gone up. This will impact on
    A. finance costs only B. admin expenses and finance costs C. finance costs and net profit D. finance costs and gross profit
  2.  
    calculate return on equity: Average equity is $75000, net profit is $25000
    A. 34% B. 33.33% C. 0.33% D. 500% E. 3.33%
  3.  
    If the business makes a loss, Average equity will
    A. increase B. not change C. impossible to know D. decrease
  4.  
    a business invests in customer service training for it's staff. This should lead to
    A. increase in sales only B. increase in sales and decrease in COGS C. an increase in sales, gross profit,and net profit D. increase in admin costs only E. increase in sales and net profit
  5.  
    Sales is $100 000 and finance costs is $5500. Finance cost % is...
    A. 0.55% B. 6% C. 55% D. 5.5% E. 60%
  6.  
    which of the following is NOT a reason for an increase in finance cost%
    A. loan is increased and interest rates stay the same B. interest rates increase and loan stays the same C. owner invests cash to pay off some of the loan D. Loan is decreased and interest rates go down
  7.  
    Average inventory is $40 000. Sales is $200000 and Gross profit is $100000.calculate inventory turnover
    A. 2.5 days B. 146 days C. 25 days D. 14.6 days E. 145 days

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