➡️QUESTION⬅️

On 1 January 2018 a business expected to have sales for the year ended 31 December 2018 of $450 000.

Its non-current assets at that date were $306 000.

On 1 July 2018 it purchased new machinery at a cost of $180000, in order to increase its sales by an extra $20 000 each month.

What was the rate of non-current asset turnover in 2018? (Ignore depreciation)

A 1.17times
B 1.42 times
C 1.44 times
D 1.74 times

ANSWER A


➡️QUESTION⬅️

Which item would result in a decrease in the expenses to revenue ratio?

A accrual for telephone
B increase in provision for doubtful debts
C prepayment for rent and rates
D the return of goods sold

ANSWER C


➡️QUESTION⬅️

Which action will increase a company’s current ratio?

A making an issue of bonus shares
B making a rights issue of shares
C increasing the provision for doubtful debts
D reducing the rate of depreciation on non-current assets

ANSWER B


➡️QUESTION⬅️

A trader wishes to set a selling price.

How does he use a mark-up?

A by adding a percentage to the cost
B by adding a percentage to the selling price
C iby deducting a percentage from the cost
D by deducting a percentage from the selling price

ANSWER A


➡️QUESTION⬅️

Calculation of which ratio does not include revenue?

A gross margin
B mark-up
C non-current asset turnover
D profit margin

ANSWER B