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ACCA FA-Interpretation of financial statements, Ratios Study Guide Solutions £6.36   Add to cart

Exam (elaborations)

ACCA FA-Interpretation of financial statements, Ratios Study Guide Solutions

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ACCA FA-Interpretation of financial statements, Ratios Study Guide Solutions Gross Profit Margin - ANSWERGross profit/sales revenue x 100 Operating Profit Margin - ANSWEROperating profit / sales revenue x 100 Current Ratio - ANSWERcurrent assets/current liabilities Quick/Acid Ratio - ANSWER(Cu...

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  • October 28, 2024
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  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • ACCA
  • ACCA
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©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED

FIRST PUBLISH OCTOBER 2024




ACCA FA-Interpretation of financial

statements, Ratios Study Guide Solutions


Gross Profit Margin - ANSWER✔✔Gross profit/sales revenue x 100


Operating Profit Margin - ANSWER✔✔Operating profit / sales revenue x 100


Current Ratio - ANSWER✔✔current assets/current liabilities


Quick/Acid Ratio - ANSWER✔✔(Current Assets - Inventory) / Current Liabilities


Asset Turnover - ANSWER✔✔Revenue/Capital employed


Inventory holding period - ANSWER✔✔Inventory/ Cost of sales X 365


Trade receivables collection period - ANSWER✔✔Trade receivables / credit sales x 365


Trade payables payment period - ANSWER✔✔Trade payables / credit purchases x 365


Return on capital employed (ROCE) - ANSWER✔✔Operating profit / capital employed x 100


Debt to Equity Ratio - ANSWER✔✔Long term loans / Equity x 100




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