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

Analysis and communication of accounting information — practice question

At 31 August 2024, W Limited supplied the following extracts from its financial statements.
(a)[2]

Calculate the trade receivables turnover (days) for the year ended 31 August 2024, and show the formula used.

(b)[2]

Explain the distinction between gross profit margin and mark-up.

(c(i))[1]

State the formula for the rate of inventory turnover (times).

(c(ii))[3]

Calculate the value of closing inventory at 31 August 2024.

(d)[4]

Calculate, to two decimal places, the return on capital employed for the year ended 31 August 2024, showing the formula used.

(e)[3]

State three further limitations of accounting ratios.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI