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Financial Statements Analysis · CAPE Management of Business Unit 1

45 past-paper questions on Financial Statements Analysis, part of Module 3: Business Finance and Accounting, from every CAPE Management of Business Unit 1 paper on Quelpr.

Practise Financial Statements Analysis
  1. 13(a)2 marks· CAPE Management of Business Unit 1 · 2001 · Paper 1Using TWO different ratios, calculate the liquidity position of Sealand Furniture Company.
  2. 13(b)1 mark· CAPE Management of Business Unit 1 · 2001 · Paper 1Outline ONE limitation of ratio analysis as a tool for measuring company performance.
  3. 12(b)1 mark· CAPE Management of Business Unit 1 · 2002 · Paper 1Compute the Net Profit Margin percentage to 1 decimal place.
  4. 12(c)2 marks· CAPE Management of Business Unit 1 · 2002 · Paper 1Compute the percentage mark-up to the nearest whole number.
  5. 15(a)1 mark· CAPE Management of Business Unit 1 · 2002 · Paper 1What is meant by 'gearing ratio'?
  6. 12(b)1 mark· CAPE Management of Business Unit 1 · 2005 · Paper 1Explain ONE financial consequence to the company, of increasing the ratio to 4:5.
  7. 11(b)2 marks· CAPE Management of Business Unit 1 · 2006 · Paper 1A business has working capital of 28 000 and current liabilities of 17 500. Calculate its current assets.
  8. 14(b)2 marks· CAPE Management of Business Unit 1 · 2006 · Paper 1A firm's acid test ratio changed from 3:1 in 1999 to 2:1 in 2000. Explain what this change signifies regarding the firm's liquidity in 2000.
  9. 6(b)(i)3 marks· CAPE Management of Business Unit 1 · 2009 · Paper 2Outline the MAIN difference between a performance ratio and a liquidity ratio.
  10. 6(b)(ii)2 marks· CAPE Management of Business Unit 1 · 2009 · Paper 2Identify ONE stakeholder who would be interested in EACH type of ratio.
  11. 6(c)(i)5 marks· CAPE Management of Business Unit 1 · 2009 · Paper 2Calculate the Current Ratio for Eastwood Hardware Ltd. and explain its implication.
  12. 6(c)(ii)5 marks· CAPE Management of Business Unit 1 · 2009 · Paper 2Calculate the Acid Test Ratio for Eastwood Hardware Ltd. and explain its implication.
  13. 6(c)(iii)5 marks· CAPE Management of Business Unit 1 · 2009 · Paper 2Calculate the Gearing Ratio for Eastwood Hardware Ltd. and explain its implication.
  14. 5(a)(i)5 marks· CAPE Management of Business Unit 1 · 2011 · Paper 2Calculate the gross profit margin for 2009 and 2010, and use your results to assess the performance of the company over the two-year period.
  15. 5(a)(ii)5 marks· CAPE Management of Business Unit 1 · 2011 · Paper 2Calculate the net profit margin for 2009 and 2010, and use your results to assess the performance of the company over the two-year period.
  16. 5(a)(iii)5 marks· CAPE Management of Business Unit 1 · 2011 · Paper 2Calculate the return on capital employed for 2009 and 2010, and use your results to assess the performance of the company over the two-year period.
  17. 5(b)10 marks· CAPE Management of Business Unit 1 · 2011 · Paper 2Explain TWO limitations of using accounting ratios to assess the performance of a firm and suggest how EACH limitation may be overcome.
  18. 6(a)6 marks· CAPE Management of Business Unit 1 · 2012 · Paper 2Outline TWO advantages and ONE limitation of ratio analysis.
  19. 6(a)(i)3 marks· CAPE Management of Business Unit 1 · 2013 · Paper 2Compute, to one decimal place, the Net Profit Margin for the year ended 30 June 2012.
  20. 6(a)(ii)3 marks· CAPE Management of Business Unit 1 · 2013 · Paper 2Compute, to one decimal place, the Acid Test Ratio for the year ended 30 June 2012.
  21. 6(a)(iii)3 marks· CAPE Management of Business Unit 1 · 2013 · Paper 2Compute, to one decimal place, the Current Ratio for the year ended 30 June 2012.
  22. 6(a)(iv)3 marks· CAPE Management of Business Unit 1 · 2013 · Paper 2Compute, to one decimal place, the Stock Turnover for the year ended 30 June 2012.
  23. 6(a)(v)3 marks· CAPE Management of Business Unit 1 · 2013 · Paper 2Compute, to one decimal place, the Long-term Debt to Equity ratio for the year ended 30 June 2012.
  24. 6(b)10 marks· CAPE Management of Business Unit 1 · 2013 · Paper 2Explain what EACH ratio calculated in part (a) demonstrates about the performance of General Hardware Ltd.
  25. 6(a)(i)2 marks· CAPE Management of Business Unit 1 · 2014 · Paper 2Define the term 'ratio analysis'.
  26. 6(a)(ii)3 marks· CAPE Management of Business Unit 1 · 2014 · Paper 2State THREE ways in which ratio analysis is important to businesses.
  27. 6(b)(i)5 marks· CAPE Management of Business Unit 1 · 2014 · Paper 2Compute, correct to one decimal place, the Acid Test ratio for the year ended 30 June 2013, and explain what it indicates about the performance of the company.
  28. 6(b)(ii)5 marks· CAPE Management of Business Unit 1 · 2014 · Paper 2Compute, correct to one decimal place, the Gearing Ratio for the year ended 30 June 2013, and explain what it indicates about the performance of the company.
  29. 6(b)(iii)5 marks· CAPE Management of Business Unit 1 · 2014 · Paper 2Compute, correct to one decimal place, the Net Profit Margin for the year ended 30 June 2013, and explain what it indicates about the performance of the company.
  30. 6(b)(iv)5 marks· CAPE Management of Business Unit 1 · 2014 · Paper 2Compute, correct to one decimal place, the Return on Capital or Equity for the year ended 30 June 2013, and explain what it indicates about the performance of the company.
  31. 5(a)(i)2 marks· CAPE Management of Business Unit 1 · 2015 · Paper 2Define the term 'ratio analysis'.
  32. 5(a)(ii)4 marks· CAPE Management of Business Unit 1 · 2015 · Paper 2Outline TWO limitations of ratio analysis.
  33. 5(b)(i)3 marks· CAPE Management of Business Unit 1 · 2015 · Paper 2Compute the current ratio for Tropics Food Retailers Ltd and Carib Food Retailers Ltd.
  34. 5(b)(ii)4 marks· CAPE Management of Business Unit 1 · 2015 · Paper 2Compare the performance of both companies based on your answer in (b)(i), highlighting TWO important points.
  35. 5(c)(i)3 marks· CAPE Management of Business Unit 1 · 2015 · Paper 2Explain how liquidity ratios may be useful in assessing the performance of Tropics Food Retailers Ltd and Carib Food Retailers Ltd.
  36. 5(c)(ii)3 marks· CAPE Management of Business Unit 1 · 2015 · Paper 2Explain how profitability ratios may be useful in assessing the performance of Tropics Food Retailers Ltd and Carib Food Retailers Ltd.
  37. 5(c)(iii)3 marks· CAPE Management of Business Unit 1 · 2015 · Paper 2Explain how efficiency ratios may be useful in assessing the performance of Tropics Food Retailers Ltd and Carib Food Retailers Ltd.
  38. 5(c)(iv)3 marks· CAPE Management of Business Unit 1 · 2015 · Paper 2Explain how gearing ratios may be useful in assessing the performance of Tropics Food Retailers Ltd and Carib Food Retailers Ltd.
  39. 5(a)(i)5 marks· CAPE Management of Business Unit 1 · 2016 · Paper 2Using the information in the table, calculate the gross profit margin for 2014 and 2015 and assess the performance of the company over the two-year period.
  40. 5(a)(ii)5 marks· CAPE Management of Business Unit 1 · 2016 · Paper 2Using the information in the table, calculate the net profit margin for 2014 and 2015 and assess the performance of the company over the two-year period.
  41. 5(a)(iii)5 marks· CAPE Management of Business Unit 1 · 2016 · Paper 2Using the information in the table, calculate the return on capital employed for 2014 and 2015 and assess the performance of the company over the two-year period.
  42. 5(b)10 marks· CAPE Management of Business Unit 1 · 2016 · Paper 2Explain TWO limitations of using accounting ratios to assess the performance of a firm and suggest how EACH limitation may be overcome.
  43. 3(a)(i)2 marks· CAPE Management of Business Unit 1 · 2018 · Paper 2Define the term 'Debt-to-equity ratio'.
  44. 3(b)9 marks· CAPE Management of Business Unit 1 · 2018 · Paper 2Explain THREE limitations of using ratios to assess the financial health of a business.
  45. 3(c)(i)6 marks· CAPE Management of Business Unit 1 · 2019 · Paper 2Using the provided income statement for 2017 and 2018, calculate the gross profit margin and operating profit margin for both years.

Related topics in Module 3: Business Finance and Accounting