O-LevelAccountingAnalysis and interpretationOct/Nov 2020Paper 1 Q301 Mark
A company provided the following information about its current ratio. year 1 2.3:1 year 2 2.4:1 year 3 2.5:1 What would explain the changes in the ratio?
AInventory is decreasing.
BOther payables are increasing.
COther receivables are increasing.
DTrade receivables are decreasing.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of analysis and interpretation 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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