A-LevelAccountingInterpretation of financial statements (ratio analysis)Oct/Nov 2023Paper 1 Q211 Mark
A company has calculated inventory turnover periods for two successive years. year inventory turnover in days 1 90 2 120 Company directors have suggested the following reasons for the change. 1 Purchases have decreased. 2 Purchases have increased. 3 Sales have decreased. 4 Sales have increased. What are the possible reasons for the change?
A1 and 3
B1 and 4
C2 and 3
D2 and 4
✓ Correct Answer
The correct answer is C: 2 and 3
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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