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. This question tests the candidate's understanding of interpretation of financial statements (ratio analysis) within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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