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A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2023 · Q201 Mark

Raj, a supplier of goods, has calculated the following ratios from the financial statements of a possible new customer. 1 current ratio 2 non-current asset turnover 3 trade payables turnover 4 trade receivables turnover Which ratios would help Raj decide whether or not to supply goods?

A1 and 2
B1 and 3
C2 and 3
D3 and 4

✓ Correct answer

B: 1 and 3

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About this question

Topic
Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, May/June 2023 Paper 1 Variant 2, question 20.

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