Accounting 0452 · IGCSE · Inter-firm comparison

Inter-firm comparison — practice question

Ali owns a clothing shop and is comparing his accounting ratios with those of Hajar, who runs a comparable clothing shop. The information below is given. [Table provided: gross margin - Ali 45%, Hajar 20%; rate of inventory turnover - Ali 15 times, Hajar 20 times.] Which explanation fits these accounting ratios?

  • A1, 2 and 3
  • B1 and 4
  • C2, 3 and 4
  • D3 and 4 only

Worked solution & mark scheme

This 1-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