Worksheet - Chapter 30: Accounting Fundamentals
Worksheet - Chapter 30: Accounting Fundamentals
Worksheet - Chapter 30: Accounting Fundamentals
Worksheet – Chapter 30
Accounting fundamentals
1 Explain one reason why a company’s income statement is important to:
a The managers of the business. [2]
3 Explain the difference between current assets and current liabilities. [3]
© Cambridge University Press 2014 Cambridge International AS and A Level Business Worksheet – Chapter 30 1
Cambridge International AS and A Level Business
4 An extract from Statement of financial position for RRT company (31 March 2015) is shown below:
c If the current ratio for 31 March 2014 was 1.8 and the acid-test ratio was 0.8, comment on RRT’s liquidity. [3]
5 RRT’s finance director has calculated the gross profit margin (over the last year) as being 23% and the
(operating) profit margin as being 5%.
a Explain why the (operating) profit margin is lower than the gross profit margin. [2]
© Cambridge University Press 2014 Cambridge International AS and A Level Business Worksheet – Chapter 30 2