Skip to content
BvunzoHub

Menu

Get full accessSign in

Cambridge IGCSE Accounting

6.1Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios in Cambridge IGCSE Accounting: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic57 practice questions3 lessons
Practise this topicAll Accounting topics

Learning objectives

What the syllabus expects you to be able to do.

  1. 6.1.1Calculate gross profit margin, mark-up, profit margin and return on capital employed.
  2. 6.1.2Calculate the current ratio and the acid test ratio.
  3. 6.1.3Calculate the rate of inventory turnover and inventory, trade receivables and trade payables turnover in days.

Lessons

  • Efficiency ratios: inventory turnover and collection and payment periods

    30 min

    Full access

  • Liquidity ratios: the current ratio and the acid test

    30 min

    Full access

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

    35 min

    Full access

Join to read every lesson, or see what Full access includes.

Sample question

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

Calculation and understanding of accounting ratios: 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?

Choose one answer

Turn Calculation and understanding of accounting ratios into a strength.

Practise with instant marking, see your mastery grow and get a study plan built around your exam date.

Start learningAccounting topics