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CIPS-Ethical and Responsible Sourcing L4M4 Paper 4.
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1.
The cash flow statement reveals:
2.
Which of the following are the three types of cash flow activities?
- Operating activities
- Investing activities
- Financing activities
- Spending activities
3.
Which of the following is not a category of financial ratios?
4.
Profitability ratios include all of the following except:
5.
Liquidity ratio include the following
Gross Profit Margin
Operating Profile
Net Profit
Quick ratio and current ratio
Gross profit margin percentage indicates organizational strength. The formula is:
(Revenue - Cost of Goods Sold) ÷ Revenue × 100
a) Revenue-Cost of goods sold x 100 b) Operating income x 100 Revenue Revenue
c) Net profitx 100 d) Current asset-stock x 100 Revenue Current liability
6.
Gross profit margin percentage indicates organizational strength. The formula is: (Revenue - Cost of Goods Sold) ÷ Revenue × 100
a) Revenue-Cost of goods sold x 100 b) Operating incomex100
Revenue Revenue
C)Net profit x 100 d) Current asset-stock x 100
Revenue Current liability
7.
In calculating profitability ratio (The higher the percentage the stronger the organization). operating profit =?
a) Revenue-cost of goods soldx 100 b) Operating income x 100
Revenue Revenue
C Net profit x 100 d) Current asset-stock x100
Revenue Current liability
8.
In calculating profitability ratio (The higher the percentage the stronger the organization) Net Profit=?
a) Revenue-cost of goods sold x 100 b) Operating income x 100
Revenue Revenue
c)Net profit x 100 d) Current asset-stock x100
Revenue Current liability
9.
In calculating liquidity, current ratio =? (More than 1is a desired outcome )
a) Net profitx 100 b) Operating income x 100
Revenue Revenue
c Current asset-stock d) Current asset
Current liability Current liability
10.
Which term refers to the proportion of an organization's funding that is financed through long-term debt?
11.
The ratio formula for calculating gearing of an organization is__
a) Non-Current liability x 100 b) Operating income x 100
Total equity + non-current liability Revenue
c) Current asset-stock d) Current income x 100 Current liability current liability
12.
When a supplier is described as "high geared," it means the supplier has a significant amount of long-term debt. If the supplier is "low geared," it means there is little or no long-term debt secured against capital assets. High gearing indicates…
13.
A potential investor may consider the results of the dividend per share ratio to access whether they would receive a good return on their investment. The dividend per share ratio =?
a)Non-current liabilityx 100 b) Operating income x 100
Total equity + non-currect liability Revenue
C Current asset-stock d) Ordinary dividend for the year
Current liability Number of ordinary shares in issues
14.
Financial ratio analysis provides insights into a company's performance over a specific period, but it should not be used alone, as conditions can change. Which of the following are common limitations of financial ratio analysis?
- Data is historical
- Impact of inflation, interest rates, and exchange rates
- Changes in operations
- Variations over time
15.
Investment ratios help assess the financial stability and long-term viability of an organization, particularly when stakeholders are considering investments. The formula for calculating Return on Investment (ROI) is:
16.
The ideal result for the quick ratio (acid test) is:
17.
Ratio analysis provides insights on everything except:
18.
Which of the following is not a limitation of ratio analysis?
- Data used is historical
- Inflation rate is not considered
- It does not explain the reasons behind trends
- Operational changes are not taken into account
- Cannot be used without additional supporting data
- Not effective for short-term analysis
- Accounting methods may vary
- Organizational strategy may change
19.
When analyzing a price quotation, which six factors should be reviewed?
- The exchange rate
- Financial ratios
- Batch quantities specified
- Whether carriage is included
- Whether taxes are included
- Payment terms and conditions
- The pricing mechanism used
20.
In addition to evaluating which offer provides the best value in terms of the total acquisition cost, the total life-cycle cost, or total cost of ownership, should also be considered. Which of the following costs are associated with the total life-cycle cost?
- Acquisition
- Tooling
- Insurance
- Operating
- Maintenance
- Training
- Storage
- Disposal
21.
When sourcing products from overseas, it is important to consider Incoterms when selecting the right supplier. Which Incoterm applies when the buyer is responsible for collecting goods directly from the supplier's premises?
22.
Which Incoterm applies when the supplier delivers goods to the buyer’s location of choice, covering all associated costs?
23.
What factors could a supplier offer to provide additional value for a contract? Select the applicable options.
- Innovation
- On-time and in-full delivery
- Sustainability
- Strong supplier relationships
- Good ethical practices
- CSR policies
- Shorter lead times
- Improved quality
- Support and training
- Strong reputation
24.
Awarding criteria can be either technical or commercial. Which of the following is NOT part of the technical criteria?
25.
Which of the following is NOT part of the commercial criteria for awarding a contract?
26.
From the following list, select the advantages of competitive tendering:
- Fair and equal attention to queries
- Prevents hasty selection
- Reduces biased selection
- Encourages unreasonably low bids
- Provides insight into the capabilities of multiple suppliers
- Promotes competition
27.
From the following list, select the disadvantages of competitive tendering:
- Fair and equal attention to queries
- Prevents hasty selection
- Reduces biased selection
- Encourages unreasonably low bids
- Provides insight into the capabilities of multiple suppliers
- Promotes competition
28.
Within the EU and EEA, public sector procurement and sourcing are governed by which of the following?
29.
One key requirement of Directive 2014/24/EU is that buyers must begin their competition by advertising it as a ‘call for competition’ in the:
