Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

On 1 May, a trader had all of his inventory destroyed in a fire. He knows the values for sales and purchases and wants to calculate the value of the inventory that was lost. Which ratio should he use?

  • Agross margin
  • Bprofit margin
  • Ctrade payables turnover
  • Dtrade receivables turnover

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