7_

which of the following cause a decrease in returns on capital employed

a.

decrease in non-current assets

b.

an increase in long term borrowings

c.

an increase in trade payable

d.

increase in net income

8_

Blanco, Inc. has the following income statement (in millions):

BLANCO, INC.

Income Statement

For the Year Ended December 31, 2010

Net Sales $200

Cost of Goods Sold 120

Gross Profit 80

Operating Expenses 44

Net Income $ 36

Using vertical analysis, what percentage is assigned to gross profit?

Select one:

a.

18%

b.

60%

c.

70%

d.

40%

9_

Statement of Financial Position (Balance sheet) 31/12/2018
Assets:		Equity and Liabilities:
Property,Plants &Equity	100,000	Share Capital ($0.5 Par) (Common Stocks)	50,000
Investment in Associate	50,000	Share premium (APIC)	20,000
Inventory	10,000	Retained Earnings	15,000
Receivables	7,000	Preference shares	10,000
Cash and Equivalents	5,000	Bank Loan	62,000
Total	172,000	Trade Payable	10,000
		Accruals	5,000
		Total	172,000

the current ratio is

Select one:

a.

other

b.

2.24

c.

1.47

d.

0.8

10_

direct method statement of cash flows advantage that it would show the quality of income for the firm in a particular year.

Select one:

True

False

11_

which of the following statement best describe the P/E ratio

a.

high P/E is better than lower ratio

b.

high P/E is related to higher future dividends

c.

no statement is true

the best sentence reflect the decrease in inventory balance at the end of the year :

Select one:

a.

decrease the current ratio and quick ratio

b.

decrease the current ratio and quick ratio.

c.

decrease the current ratio

d.

decrease the quick ratio

13_

if the beginning balance of the accumulated depreciation is $ 50,000 and the ending balance is $ 65,000. During the year an equipment costs $12,000 with an accumulated depreciation on it is $ 4,000 was sold. the depreciation expense should effect the operating activities in the statement of cash flows as

a.

$ 15,000 outflow

b.

$ 19,000 outflow

c.

$ 19,000 inflow

d.

$ 15,000 inflow

14_

indirect method statement of cash flows would show the quality of income for the firm in a particular year.

Select one:

True

False

d.

as higher P/E is more expectations of investors about the firm future profit growth

12_