A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2012 · Q221 Mark
The owner of a business has to decide whether to sell a particular type of product. Which ratio is the most useful in making the decision?
Acurrent ratio
Bgross profit ratio
Creturn on capital employed
Dtrade receivables turnover
✓ Correct answer
B: gross profit ratio
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Analysis and communication of accounting information and see which topics are most likely to come up next.
Sign up free →