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
Ahigher higher
Bhigher lower
Clower higher
Dlower lower
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of financial statements analysis (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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