O-LevelAccountingAnalysis and interpretation7707/11 · May/June 2023 · Q331 Mark

Ramiz works as a sales manager in a car showroom. He is paid on the basis of the number of cars sold. Which accounting ratio will be relevant to Ramiz?

Agross margin

Bprofit margin

Crate of inventory turnover

Dtrade receivables turnover

✓ Correct answer

C: rate of inventory turnover

Oracle Prep sorts past-paper questions by topic, so you can drill Analysis and interpretation and see which topics are most likely to come up next.

Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2023 Paper 1 Variant 1, question 33.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

A trader prepares financial statements each year. What do these assist the trader to do?

A business provided the following information for the year. profit for year: $24 000 expenses: $16 000 gross profit/s…

Which is used to calculate the current ratio but not the quick (acid test) ratio?

Ann is a trader. On 1 April 2011 Cindy's account in Ann's ledger showed a credit balance of $520. The following trans…

A trial balance fails to agree. The credit column totals $10 000. Two errors are then found. The sales journal has b…

Azad maintains a ledger account for general expenses. On 1 January there was a prepayment of $176. On 31 December th…