Which of the following statements about accounting ratios and their interpretation are correct?(1) A highly-geared company is less able to survive a downturn in profit than an ungeared company.(2) A high price earnings ratio usually indicates that the market expects the company’s profits to rise.(3) All companies should try to achieve a current ratio of 2:1.

1 .Which of the following factors could cause a company’s gross profit percentage on sales to fall below the expected level?(1) Overstatement of the opening inventory valuation.(2) The incorrect inclusion in purchases of invoices relating to goods received from suppliers in the following period.(3) The incorrect inclusion in sales of invoices relating to goods despatched to customers in the following period.(4) Increased discounts received from suppliers.

A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

题型: 单选题 提问时间: 2021-08-22

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2 .Which of the following factors would cause a company’s gearing ratio to fall?(1) A 1 for 1 bonus issue of ordinary shares.(2) A 1 for 2 rights issue of ordinary shares.(3) An issue of loan notes.(4) An upward revaluation of land and buildings.

A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

题型: 单选题 提问时间: 2021-08-22

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4 .Which one of the following would be classified under investing activities in a statement of cash flows prepared in accordance with IAS 7?

A Repayment of a loan made to another company B Repayment of a loan from a bank C Proceeds from a new issue of shares D Dividend payments to shareholders

题型: 单选题 提问时间: 2021-08-22

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