A-LevelAccountingFinancial Statements Analysis (Ratio Analysis)Feb/Mar 2016Paper 1 Q201 Mark

The following ratios have been calculated for two businesses, both with the same revenue of $100000. X Y gross margin 20% 25% profit margin 10% 10% How do the cost of sales and expenses of X compare with those of Y? cost of sales expenses A higher higher B higher lower C lower higher D lower lower

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is B: higher lower.

Q: What topic does this question test?

This question tests Financial Statements Analysis (Ratio Analysis) in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Ahigher higher

Bhigher lower

Clower higher

Dlower lower

✓ Correct Answer

The correct answer is B: higher lower

📋 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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About This A-Level Accounting Question

Topic

This multiple-choice question tests Financial Statements Analysis (Ratio Analysis) in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2016 examination, Paper 1 Variant 2.

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