Quiz: Gearing Ratio - Calculation and Interpretation

WJEC Eduqas GCE A LEVEL in BUSINESS specification

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Building on what you've learned about financial ratios, let's test your knowledge of the gearing ratio!

Multiple ChoiceInteractive

What does the gearing ratio measure?

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Math EquationInteractive

Match the items on the left with their correct pairs on the right

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Fill in the BlankInteractive

A business with a gearing ratio over {{blank0}}% is considered highly geared.

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Multi-SelectInteractive

Which of the following are advantages of a low gearing ratio? (Select all that apply)

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MatchingInteractive

Match the items on the left with their correct pairs on the right

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Multiple ChoiceInteractive

Why might a business prefer high gearing?

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Math EquationInteractive

Match the items on the left with their correct pairs on the right

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Multiple ChoiceInteractive

Which of the following is a drawback of high gearing?

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Fill in the BlankInteractive

To reduce its gearing ratio, a business can either reduce {{blank0}} or increase {{blank1}}.

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