WAEC Accounting 2017 Theory — Question 10

4(b) Identify the accounting ratio which relates to each of the following statements: (i) a return of GH¢10 net profit for every GH¢100 invested; (ii) goods are held on the average for a period of one month before they are sold; (iii) trade debtors on the average take a period of 33 days to settle their debts; (iv) trade creditors on the average are paid within 44 days for credit purchases; (v) gross profit of GH¢40 is made on every GH¢100 of net sales; (vi) current assets is three times that of current liabilities; (vii) liquid assets is twice that of current liability; (viii) every GH¢100 net turnover, GH¢17 is made after deducting operational expenses; (ix) profit covers interest payment 5 times