Analysis of accounts

5.5

What the syllabus asks of you

Profitability: The concept and importance of profitability
Liquidity: The concept and importance of liquidity
How to interpret the financial performance of a business by calculating and analysing: Gross profit margin
How to interpret the financial performance of a business by calculating and analysing profitability ratios and liquidity ratios: Profit margin
How to interpret the financial performance of a business by calculating and analysing profitability ratios and liquidity ratios: Return on Capital Employed
How to interpret the financial performance of a business by calculating and analysing profitability ratios and liquidity ratios: Current ratio
How to interpret the financial performance of a business by calculating and analysing profitability ratios and liquidity ratios: Acid test ratio
Why and how accounts are used: Needs of different users of accounts and ratio analysis
Why and how accounts are used: How users of accounts and ratio results might use information to help make decisions, e.g. whether to lend to or invest in the business

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Chapter 5: Analysis of accounts

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Drill this topic

All 19 questions on Analysis of accounts, untimed — answer on paper, then mark yourself against the mark scheme.

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Choose the years and how many questions, then print it with the answers on separate pages.

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19 questions

These are structured questions, answered in working rather than by picking an option, so they are not listed here one by one. The drill above puts each in front of you with its mark scheme to check against.