← Accounting syllabus

ScotlandAccounting

Analysing Accounting Information

3 dot points across 3 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How are the main profitability, liquidity and efficiency ratios calculated, and what does each one tell a user about the business?

Calculation and interpretation of accounting ratios covering profitability (gross profit percentage, profit for the year percentage, return on capital employed), liquidity (current ratio, acid test ratio) and efficiency (rate of inventory turnover, trade receivable and trade payable days).
A focused answer to the SQA Higher Accounting ratios content, covering the profitability ratios (gross profit percentage, profit percentage, return on capital employed), the liquidity ratios (current and acid test) and the efficiency ratios (inventory turnover, receivable and payable days), with how each is interpreted.
10 min answer →

How do you interpret financial information for different users, report your findings, and recognise the limitations of accounting information?

Interpretation of financial accounting information for different stakeholders, the comparison of performance over time and against other businesses, the reporting of findings with recommendations, and the limitations of accounting information and ratio analysis.
A focused answer to the SQA Higher Accounting interpretation content, covering the information needs of different stakeholders, comparing performance over time and against other businesses, reporting findings with recommendations, and the limitations of accounting information and ratio analysis.
9 min answer →

How are spreadsheets used to prepare and present accounting information, and what does the Higher Accounting assignment require?

Overview of the use of spreadsheets to prepare, analyse and present accounting information (formulae, functions and presentation), and the requirements of the course assignment that applies these skills to a practical accounting task.
A focused overview of the SQA Higher Accounting use of spreadsheets and the course assignment, covering spreadsheet formulae and functions, presenting accounting information clearly, and what the assignment asks candidates to do with these skills.
9 min answer →