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

Analysis and communication of accounting information — practice question

Consult Source B in the insert.
(a)[4]

Explain the stewardship function of the directors in a public limited company.

(b)[8]

Calculate the working capital cycle (in days). Round the component figures to the nearest day.

(c(i))[2]

Calculate, to two decimal places, the following ratio: price/earnings.

(c(ii))[3]

Calculate, to two decimal places, the following ratio: dividend yield.

(c(iii))[3]

Calculate, to two decimal places, the following ratio: interest cover.

(d)[5]

Explain why X plc has managed the working capital cycle more effectively than M plc.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “In a public limited company, ownership and control are kept separate” …

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