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Cambridge IGCSE Accounting

6Analysis and interpretation

Analysis and interpretation in Cambridge IGCSE Accounting: what the syllabus expects you to know, the learning objectives and how to practise.
Topic134 practice questions7 lessons

In this topic

Lessons

  • Efficiency ratios: inventory turnover and collection and payment periods

    30 min

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  • Liquidity ratios: the current ratio and the acid test

    30 min

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  • Profitability ratios: margin, mark-up, profit margin and ROCE

    35 min

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  • Interpreting financial statements and ratios

    40 min

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  • Comparing the ratios of two businesses

    30 min

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  • Users of accounting information

    25 min

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  • Limitations of accounting statements

    25 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Analysis and interpretation: sample question

1 mark

Cost of sales was US$54,600. Inventory was US$7,200 at the start of the year and US$8,400 at the end. What was the rate of inventory turnover?

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