Quelpr
10 marksFinancial Statements Analysis

CAPE Management of Business Unit 1 · 2016 · Paper 2 · Question 5(b)

Explain TWO limitations of using accounting ratios to assess the performance of a firm and suggest how EACH limitation may be overcome.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 5(a)(i)Using 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.[5 marks]
  2. 5(a)(ii)Using 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.[5 marks]
  3. 5(a)(iii)Using 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…[5 marks]

More practice: the rest of this paper · more Financial Statements Analysis questions · all CAPE Management of Business Unit 1 past papers