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

Analysis and communication of accounting information — practice question

Nibali has supplied the following details for the year ending 31 July 2019.

(a(i))[2]

Calculate the inventory turnover period in days.

(a(ii))[2]

Calculate the trade receivables turnover period in days.

(a(iii))[3]

Calculate the trade payables turnover period in days.

(b)[5]

Discuss the liquidity of Nibali’s business based on the information available.

(c)[3]

Identify three disadvantages for a business of holding too much inventory.

Worked solution & mark scheme

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