Question
Below is the accounts receivable turnover ratio and gross profit margin for 2020 and 2019. You are an auditor who just performed this analytic and
Below is the accounts receivable turnover ratio and gross profit margin for 2020 and 2019. You are an auditor who just performed this analytic and need to determine which risks you are concerned about based on the results. Please provideTWOconcerns for each ratio (4 concerns total). Match each concern toONEassertion.(6 marks)
Ratio
2020
2019
Accounts receivable turnover
4.72(2020)
6.12(2019)
Gross profit margin
64%(2020)
52%(2019)
*Only your first 2 concerns for each ratio will be marked. Any further concerns will be ignored
Concern #
Accounts receivable turnover
Assertion
1
2
Concern #
Gross profit margin
Assertion
1
2
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