Subsection 6.1. Calculation and understanding of accounting ratios for Accounting, O Level - revisedeck

6.1. Calculation and understanding of accounting ratios

A subsection of Accounting, 7707, through 6. Analysis and interpretation

Listing 6 of 6 questions

Sabelo’s liquid (acid test) ratio was higher on 1 January 2019 than it was on 31 December 2019. What could have caused this?

7707_s20_qp_12

MCQ

2020

Paper 1, Variant 2

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A trader is considering selling goods on credit to a new customer. What could be calculated from the customer’s financial statements to indicate the time normally taken to pay for goods purchased on credit?

7707_s22_qp_11

MCQ

2022

Paper 1, Variant 1

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Samuel, a trader, decided to issue statements of account each month. Which ratio does Samuel hope to improve by doing this?

7707_s22_qp_12

MCQ

2022

Paper 1, Variant 2

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Sabelo’s liquid (acid test) ratio was higher on 1 January 2022 than it was on 31 December 2022. What could have caused this?

7707_s23_qp_12

MCQ

2023

Paper 1, Variant 2

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What is the best indicator of the liquidity of a business?

7707_w21_qp_13

MCQ

2021

Paper 1, Variant 3

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CD Limited took out a long-term bank loan and used part of the funds to pay some of its credit suppliers early. How did this affect the trade payables turnover and the return on capital employed (ROCE)?

7707_w23_qp_13

MCQ

2023

Paper 1, Variant 3

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Questions Discovered

6