Older MCQs might not have the typical A, B, C,
D
choices. They
have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such
combinations to the answer.
A
1, 2 and 3 are correct
B
1 and 2 only are correct
C
2 and 3 only are correct
D
1 only is correct
how to calculate the following ratios: working capital cycle (in days), net working assets to revenue (sales), interest cover, gearing ratio, earnings per share, price/earnings ratio, dividend per share, dividend yield, dividend cover
how to calculate key accounting ratios to measure profitability, liquidity and efficiency: profitability ratios: gross profit margin, mark-up, profit margin, return on capital employed, expenses to revenue ratio (operating expenses to revenue ratio), liquidity ratios: current ratio, acid test ratio, efficiency ratios: non-current asset turnover, trade receivables turnover (days), trade payables turnover (days), inventory turnover (days), rate of inventory turnover (times)
how to calculate the value of closing inventory using the first in first out (FIFO) and weighted average cost (AVCO) methods (perpetual and periodic)
