Doshboord — Mycourses—_In20-S5-MN3043 (119050) 21 August - 27 August Soll Assossment= Lesson 3 Storted on Tuesday, 29 August 2023, 110 PM State Finished Completedion Tuesday, 28 August 2023, 116 PM Time token 6 mins i6 secs Grade 6.00 out of 10.00 (60%)auestion Which is correct regarding the Comparative Financial Statement and Common size Financial Statornent? Comparative Financial statements can be prepared for cenalyzing Financial Statements between companies while Common size Financial Statements are prepared only for two years comparison within the company. Comparative Financial Statements are prepared to find ‘out just the variance in individual Fincncial Statement, items while Common size Financial Statements are prepared to find out the variances in individual Financtal Statement items as a percentage of @ commen bate. Comparative Financial Statements are prepared by * taking a commen base while Commen size Financial Statements are prepared by taking Total assets as the common base for al inividual Financral Statement items, Comparative Financial Statements does not allow to find ‘out reasons for variances in individual Financial Statement items wile Common size FinancialStatements dilow to find out variances in individual Financial Statement items and reasons for variances. ‘Your answer is incorrect, ‘The correct answer is: ‘Comporative Financial Statements are prepared to find out just the variance In individual Financial Statement iterns wile ‘Common size Financial Statements are prepared to find out the variances in individual Financial Statement iterns as & E percentage of a common base, @@ question Mork199 out Select the correct matching regarding the types of ratios and its objectives. ratio bjective Profitability Ratios To identiy the lovel of ality re-pay financial abilities Liquidity Ratios How efficiently assets are tized to generate Revenue. ‘Gearing Ratios How much of profit has been armed as a percentage of Financial Efficiency Ratios How much of debt capital old compare to the equity apital 10,28, 3-0,4-8 10, 2-8, 3-8, 4-Your answer is correct ‘The cortoct answer is: = 1-6, 2-8, 849, d-8B question Mork .00 out Kamal Enterprises had a Net Prof (ater interest) of Re. 200,000 ‘and thoy have expendod Rs. 60,000 of Intorost. Kamal reported fs, 500,000 of Equity and Rs, 200,000 of Long - term debt. What ‘Would be the Return on Capital Employed (Roce)? 0% 25% 39% 8 aon Your answer is incorrect, ‘The cortect answer is: 40%cuesiond ‘Which is the most profitable regarding the inventory? Mork199 out High inventory Turnover ratio, High inventory residence period High inventory Turnover ratio, low inventory residence period © Low inventory Turnover rati, High inventory residence period ~ © Low inventory Tumover ratio, Low inventory residence period ‘Your answer is correct. B The correct answer is: High inventory Turnover ratio, Low Inventory residence periodauenson 5 How to find the Quick Asset Retio? wa 00 out Current Assets/Current Liabilities (Current assets ~ inventory) [Current Liabilities Current assets ~ (Inventory + Pre~ paid expenses) Icurrent liabittios 2 2 current assets - (Inventory + Pre ~ paid expenses) (current uabitties + Equity) Your answer is correct ‘The correct answer Is: B Current Assets ~ (Inventory + Pre ~ poid expenses) LiabilitiesB auestion Mork199 out ‘what is the common base of common size analysis in P& Land financial position? Sales and Total Equity Gross Profit and Total Assets Soles and Totol Assets Net Profit and Long-term Liabilities Your answer is correct. The correct answer is: Sales ond Total AssetsB question? Mork .00 out ‘wnat is the expected standard for Current Ratio and Quick Ratio? Yond ut 2lond ¥ 23.0nd 21 ¥Sond12 Your answer is incorrect. ‘The correct answer is: 2land 1auestion B uring a year @ business sold stock which had cost Rs.60,000. ‘The stock hold at the beginning of the year was Rs.6,000 and at the end of the year Rs10,000, What was the annual rate of Inventory turnover ratio and Inventory residency period? lotimes and 36 days 6 times and 60 days 178 times and 48 days Times and 82 days Your answer is incorrect. ‘The correct answer is: 75 times and 48 daysauseton high inventory (stock) turnover ratio indicates that: Mork199 out o ¥ ‘The business holds inventory for a relatively short period of time ° ©. The business collects debts from customers quickly : © The business does not allow credit sales > © igh levels of inventory are hela a Your answer is correct. , ‘The correct answer is: . ‘The business holds inventory for a relatively short period of time agoa ‘what is the better condition of Debtors turnover ratio and omect Craditor turnover ratio? e008 | © ‘High Tumover anc tow Turnover ¥ & ©. High Tumover and High Turnover . © Low Tuover and High Turnover Low Turnover and tow Turnover Your answer is correct. ‘The correct answer is: High Turnover and Low Turnover @ Previous activity Noxt activity ‘< Practice Questions sump te Lesson 03 - Homework SubmissionStay in touch University of Moratuwa @ https://uomik % 0094 11 26 400 5) bata retention summary