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ScotlandAccountingQuick questions

Financial Accounting

Quick questions on Interpretation of accounts: ratio analysis - SQA Advanced Higher Accounting

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Gross profit is GBP 150,000 on revenue of GBP 500,000. Calculate the gross profit margin. [2 marks]
What is q2?
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Current assets are GBP 80,000, inventory is GBP 35,000 and current liabilities are GBP 50,000. Calculate the acid-test ratio. [2 marks]

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