Partnerships: Analysis & Interpretation is one of 9 topics in the Grade 11 Accounting CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Net profit on sales is calculated as:
(Net Profit / Sales) x 100
(Sales / Net Profit) x 100
(Net Profit / Cost of Sales) x 100
(Gross Profit / Sales) x 100
Answer: (Net Profit / Sales) x 100 — Net profit on sales = (Net Profit / Sales) x 100, showing the percentage of sales remaining after ALL expenses, including interest, are deducted.
Easy
2. The acid test ratio differs from the current ratio because it:
Excludes inventory, the least liquid current asset
Excludes trade debtors
Includes non-current liabilities
Uses net profit instead of current assets
Answer: Excludes inventory, the least liquid current asset — The acid test ratio is (Current Assets - Inventory) : Current Liabilities, a stricter liquidity measure since inventory must still be sold and collected before becoming cash.
Medium
3. A partnership had Gross Profit of R248 000 and Sales of R620 000. Calculate the gross profit percentage on sales, to 2 decimal places.
Answer: 40.00 — GP% on sales = (248000/620000) x 100 = 40,00%.
