A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2014 · Q261 Mark

Gordon sells goods on credit to Sybil. Which information from Sybil's financial statements is of greatest interest to him?

Acurrent ratio

Bgross profit margin

Cmark up

Dreturn on capital employed

✓ Correct answer

A: current ratio

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2014 Paper 1 Variant 2, question 26.

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