Question 1
What is the main purpose of ratio analysis in business finance?
Question 2
Which ratio is most commonly used to assess a business's short-term liquidity?
Question 3
If a business has current assets of $60,000$ and current liabilities of $30,000$, what is its current ratio?
Question 4
What does a gross profit margin of $40\%$ mean?
Question 5
Which statement best describes why a ratio may be less useful if considered on its own?
