Fix the Formula (ACCA FA)

Exercise and reference answers

Questions

1. Statement parts

   1. Current ratio
   2. =
   3. current assets
   4. /
   5. non-current liabilities

   Correction

   current liabilities

   Incorrect part

   non-current liabilities

2. Statement parts

   1. Quick ratio
   2. excludes
   3. receivables
   4. from current assets

   Correction

   inventory

   Incorrect part

   receivables

3. Statement parts

   1. Gross margin
   2. =
   3. gross profit
   4. /
   5. cost of sales

   Correction

   revenue

   Incorrect part

   cost of sales

4. Statement parts

   1. Gearing
   2. =
   3. debt
   4. /
   5. revenue

   Correction

   equity plus debt

   Incorrect part

   revenue

Instructions

Tap the incorrect token in the formula.