q- a The first step in the interpretation process should be: Group of answer choices A review of the auditors report The calculation of as
q- a The first step in the interpretation process should be:
Group of answer choices
A review of the auditors report
The calculation of as many ratios as possible
Vertical Analysis of Financial Statements
A general overview of the financial statements to be analysed
b)
The following information is available about two companies, A Ltd and B Ltd.
| A Ltd
| B Ltd
| |
| Sales | 2,000 | 2,000 |
| Cost of sales | 1,000 | 500 |
| Trade receivable (year end) | 250 | 150 |
Which of the following statements is correct in making a comparison of company A with company B?
Group of answer choices
Company A has the higher gross profit margin percentage and the shorter trade receivables settlement period
Company A has the lower gross profit margin percentage and the longer trade receivables settlement period
Company A has the higher gross profit margin percentage and the longer trade receivables settlement period
Company A has the lower gross profit margin percentage and the shorter trade receivables settlement period
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Authors: Dr David Tuffley
1st Edition
1461130468, 978-1461130468
