A-LevelAccountingRatio AnalysisFeb/Mar 2021Paper 1 Q201 Mark
The following information for a business was available at the end of its financial year. inventory $ 20 000 bank 8400 credit trade receivables 35000 trade payables 15000 rent receivable in arrears 3000 There is also a 5-year bank loan of $20000 repayable in equal annual instalments. What was the current ratio?
A2.12:1
B2.88:1
C3.52:1
D4.43:1
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep