QUESTION 1 This question has 10 multiple choice questions. You are required to select the correct answer and write your responses using the highlighter function x x Aub A. Just highlight the correct answer. Remember to save this document using the "save as" function and name the document with your own name and student ID eg. HARWINDAR SINGH - BBA 1234 No. Question B 1 a statement of profit or loss a statement of accumulated profit a statement of financial position Financial performance is measured based on ratios computed from financial statements. The statement that shows the financial picture of a business as at one point in time is 2 An accurate report of the flows of sales, costs and charges to profit over a period of time is called a statement of profit or loss a statement of accumulated profit a statement of financial position 3 share capital accumulated profits owners' equity In Financial Statements, total assets less total liabilities represent 4 The return on investment from the shareholders' point of view is net profit over assets times 100% net profit over owners' equity times assets over owners' equity times 100 % 100% No. Question A B 5 cash Profits always increase share capital owners' equity 6 A gross profit margin percentage is computed sales over gross profit times 100% gross profit over net profit after tax times 100% gross profit over net sales times 100% 7 Interest Cover may be computed as Interest divided by operating profit Operating Profit divided by Interest Expense Net Profit divided by Interest Expense 8 The Cash Ratio must normally be at least how many percent of current liabilities 10% 20% 30% 9 The key financial objective of firms is to maximize Shareholder wealth Profits attributable to shareholders Growth of the business 10 The Asset Utilisation ratio measures Amount of Profit for every $ invested Amount of Revenue for every $ invested Amount of Assets for every $ invested