A-LevelAccountingAnalysis & Interpretation of Financial StatementsOct/Nov 2016Paper 1 Q211 Mark
Owusu Limited has a constant level of annual sales and a constant gross margin. Each year the inventory increases. Which effects does this have on the inventory holding period and on inventory turnover? inventory holding inventory turnover (in days) (times) A decrease decrease B decrease increase C increase decrease D increase increase
Adecrease decrease
Bdecrease increase
Cincrease decrease
Dincrease increase
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of analysis & interpretation of financial statements within the Accountingsyllabus. The examiner's mark scheme requires...
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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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