All Courses
Get the App Signup / Login
Sign in Open App
Year 11 Exam  >  Year 11 Tests  >  Accounting for GCSE/IGCSE  >  Test: Analysis and Interpretation - Year 11 MCQ

Test: Analysis and Interpretation - Year 11 MCQ


Test Description

10 Questions MCQ Test Accounting for GCSE/IGCSE - Test: Analysis and Interpretation

Test: Analysis and Interpretation for Year 11 2024 is part of Accounting for GCSE/IGCSE preparation. The Test: Analysis and Interpretation questions and answers have been prepared according to the Year 11 exam syllabus.The Test: Analysis and Interpretation MCQs are made for Year 11 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Analysis and Interpretation below.
Solutions of Test: Analysis and Interpretation questions in English are available as part of our Accounting for GCSE/IGCSE for Year 11 & Test: Analysis and Interpretation solutions in Hindi for Accounting for GCSE/IGCSE course. Download more important topics, notes, lectures and mock test series for Year 11 Exam by signing up for free. Attempt Test: Analysis and Interpretation | 10 questions in 20 minutes | Mock test for Year 11 preparation | Free important questions MCQ to study Accounting for GCSE/IGCSE for Year 11 Exam | Download free PDF with solutions
Test: Analysis and Interpretation - Question 1
Save

What does the Current Ratio assess in a business?

Detailed Solution for Test: Analysis and Interpretation - Question 1
The Current Ratio, or Working Capital Ratio, evaluates the liquidity of a business by comparing its current assets to its current liabilities. It indicates the ability to meet short-term debts.
Test: Analysis and Interpretation - Question 2
Save

Which formula correctly calculates the Quick Ratio?

Detailed Solution for Test: Analysis and Interpretation - Question 2
The Quick Ratio, also known as the Acid-Test Ratio, excludes inventory from current assets to assess immediate liquidity. It is calculated as Quick Ratio = (Current Assets - Inventory) / Current Liabilities.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Analysis and Interpretation - Question 3
Save

What does the Return on $100 of Sales measure?

Detailed Solution for Test: Analysis and Interpretation - Question 3
Return on $100 of Sales reflects how efficiently expenses are managed to generate returns, indicating profitability through expense control.
Test: Analysis and Interpretation - Question 4
Save
How is the Rate of Inventory Turnover calculated?
Detailed Solution for Test: Analysis and Interpretation - Question 4
The Rate of Inventory Turnover measures how quickly inventory is sold and replaced, calculated as Cost of Sales / Average Inventory.
Test: Analysis and Interpretation - Question 5
Save
What does the Trade Receivables to Sales Ratio indicate?
Detailed Solution for Test: Analysis and Interpretation - Question 5
The Trade Receivables to Sales Ratio measures the efficiency of credit sales by indicating how much of sales remain as receivables.
Test: Analysis and Interpretation - Question 6
Save
What is the purpose of the Capital Employed ratio?
Detailed Solution for Test: Analysis and Interpretation - Question 6
The Capital Employed ratio evaluates the efficiency of capital utilization by expressing net profit as a percentage of capital employed.
Test: Analysis and Interpretation - Question 7
Save
Why is a Current Ratio of 1.5:1 to 2:1 considered satisfactory?
Detailed Solution for Test: Analysis and Interpretation - Question 7
A Current Ratio between 1.5:1 to 2:1 is considered satisfactory as it shows the business can meet its short-term debts promptly.
Test: Analysis and Interpretation - Question 8
Save
Which action can worsen the Quick Ratio?
Detailed Solution for Test: Analysis and Interpretation - Question 8
Acquiring additional non-current assets can worsen the Quick Ratio by tying up funds that could otherwise be used for liquidity.
Test: Analysis and Interpretation - Question 9
Save
What does the Rate of Inventory Turnover indicate with a faster rate?
Detailed Solution for Test: Analysis and Interpretation - Question 9
A faster Rate of Inventory Turnover indicates reduced funds tied up in inventory, suggesting efficient management of inventory.
Test: Analysis and Interpretation - Question 10
Save
How does the Average Collection Period impact a business?
Detailed Solution for Test: Analysis and Interpretation - Question 10
The Average Collection Period impacts cash flow management by indicating how efficiently debtors settle their accounts, affecting liquidity.
22 videos|29 docs|12 tests
Join Course
Information about Test: Analysis and Interpretation Page
In this test you can find the Exam questions for Test: Analysis and Interpretation solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Analysis and Interpretation, EduRev gives you an ample number of Online tests for practice

Top Courses for Year 11

22 videos|29 docs|12 tests
Join Course
Download as PDF

Top Courses for Year 11

Important Questions for Analysis and Interpretation

Find all the important questions for Analysis and Interpretation at EduRev.Get fully prepared for Analysis and Interpretation with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Analysis and Interpretation syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Analysis and Interpretation resources.

Analysis and Interpretation MCQs with Answers

Prepare for the Analysis and Interpretation within the Year 11 exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Analysis and Interpretation Accounting for GCSE/IGCSE

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Analysis and Interpretation with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup