O-LevelAccountingAnalysis and interpretationOct/Nov 2020Paper 2 Q520 Marks
Nazim owns a wholesale business and has prepared draft financial statements for the year ended 30 June 2020, his first year of trading. After the preparation of these financial statements, some errors were discovered. Nazim compared his results with those of his brother Aziz, who has a similar business. Nazim Aziz Current ratio 1.71:1 2.12:1 Liquid (acid test) ratio 0.77:1 1.28:1 Return on capital employed 13.65% 15.25% Nazim discovered that his rate of inventory turnover (times) was also lower than that of Aziz.
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