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Commonly Used Financial Ratios

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

A company has liabilities that are equal to $75,000, while its assets are $150,000. What is its current ratio?

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1. Why is the debt ratio used?

2. Which of the following BEST defines gross profit margin?

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About This Quiz & Worksheet

This quiz and worksheet combo helps you gauge your knowledge of financial ratios and their purposes. You will be quizzed on financial terms like gross profit margin and assets.

Quiz & Worksheet Goals

Use this worksheet and quiz to review definitions of the following terms:

  • Liabilities
  • Assets
  • Debt ratio
  • Current ratio
  • Gross profit margin

Skills Practiced

This quiz and worksheet can help you practice the following skills:

  • Information recall - access the knowledge you have gained regarding the explanation of assets
  • Reading comprehension - ensure that you draw the most important information from the related lesson on financial ratios
  • Interpreting information - verify that you can read information regarding examples of liabilities and interpret it correctly

Additional Learning

To learn more about different financial ratios, review the corresponding lesson called Commonly Used Financial Ratios. This lesson will help you:

  • Understand what financial ratios are
  • Compare and contrast the debt ratio and current ratio
  • Identify examples of liabilities
  • Define liquidity
  • Determine what the gross profit margin shows
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