A-LevelAccountingRatio Analysis / Performance MeasurementMay/June 2020Paper 1 Q181 Mark
The rate of inventory turnover of a company has been calculated for two successive periods. current period 5.6 times previous period 4.8 times The following statements have been made about the change. 1 Inventory is moving more slowly in the current period. 2 Inventory is moving more quickly in the current period. 3 Management of inventory has been more efficient in the current period. Which statements may explain the change?
A1 and 3
B1 only
C2 and 3
D2 only
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of ratio analysis / performance measurement 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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