KASNEB CPA Foundation Level (Kenya) · Financial Accounting

Profit, margins and ratios

16 practice questions, each with the answer and an explanation.

Practise Profit, margins and ratios now

Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 16 questions

  1. A shop buys goods for KSh 80,000 and sells them at a mark-up of 25% on cost. What is the gross profit?
  2. A shop buys goods for KSh 120,000 and sells them at a mark-up of 20% on cost. What is the gross profit?
  3. A shop buys goods for KSh 45,000 and sells them at a mark-up of 30% on cost. What is the gross profit?
  4. A shop buys goods for KSh 240,000 and sells them at a mark-up of 50% on cost. What is the gross profit?
  5. A shop buys goods for KSh 36,000 and sells them at a mark-up of 20% on cost. What is the gross profit?
  6. A business has current assets of KSh 360,000 (including inventory of KSh 120,000) and current liabilities of KSh 180,000. What is its quick (acid test) ratio?
  7. A business has current assets of KSh 500,000 (including inventory of KSh 150,000) and current liabilities of KSh 200,000. What is its quick (acid test) ratio?
  8. A business has current assets of KSh 270,000 (including inventory of KSh 60,000) and current liabilities of KSh 90,000. What is its quick (acid test) ratio?
  9. A business has current assets of KSh 840,000 (including inventory of KSh 240,000) and current liabilities of KSh 420,000. What is its quick (acid test) ratio?
  10. A firm's sales are KSh 1,000,000, cost of sales KSh 600,000 and expenses KSh 250,000. What is its net profit margin?
  11. A firm's sales are KSh 800,000, cost of sales KSh 520,000 and expenses KSh 160,000. What is its net profit margin?
  12. A firm's sales are KSh 1,500,000, cost of sales KSh 900,000 and expenses KSh 300,000. What is its net profit margin?
  13. A firm's sales are KSh 640,000, cost of sales KSh 400,000 and expenses KSh 120,000. What is its net profit margin?
  14. Opening inventory was KSh 100,000, purchases KSh 700,000 and closing inventory KSh 150,000. What is the inventory turnover (cost of sales divided by average inventory)?
  15. Opening inventory was KSh 200,000, purchases KSh 880,000 and closing inventory KSh 80,000. What is the inventory turnover (cost of sales divided by average inventory)?
  16. Opening inventory was KSh 60,000, purchases KSh 340,000 and closing inventory KSh 100,000. What is the inventory turnover (cost of sales divided by average inventory)?

Keep practising

More KASNEB CPA Foundation Level (Kenya) topics

All KASNEB CPA Foundation Level (Kenya) practice →

Ready for the full KASNEB CPA Foundation Level (Kenya) test?

Take a mock testKASNEB CPA Foundation Level (Kenya) hub