Accounts and finance

Table of Contents

1. Topic pack - Accounts and finance - introduction
2. 3.1 Sources of finance - notes
3. 3.1 Sources of finance - questions
4. 3.2 Investment appraisal - notes
5. Investment appraisal
6. 3.2 Investment appraisal - questions
7. 3.3 Working capital - notes
8. 3.3 Working capital - questions
9. 3.4 Budgeting - notes (HL only)
10. 3.4 Budgeting - questions
11. 3.5 Final accounts - notes
12. 3.5 Final accounts - questions
13. 3.5 Final accounts - simulations and activities
14. 3.6 Ratio analysis - notes
15. 3.6 Ratio analysis - questions
    1. Profitability ratios - short answer questions
    2. Profitability ratios - memorandum
    3. Profitability - numerical questions
    4. Liquidity ratios - short answer questions
    5. Liquidity ratios - memorandum
    6. Liquidity ratios - numerical questions
    7. Efficiency ratios - short answer questions
    8. Financial efficiency ratios - numerical questions
    9. Gearing - short answer questions
    10. Gearing - numerical questions
    11. Shareholders' ratios - short answer questions
    12. Shareholder ratios - numerical questions
    13. Ratio analysis - limitations - report
    14. Ratio analysis - limitations
    15. Ratio analysis - summary questions
    16. Ratio analysis - case study - Stortford Yachts Limited
    17. Profiting from mobiles
16. 3.6 Ratio analysis - simulations and activities
17. Printable version

Efficiency ratios - short answer questions

Question 1

Explain why the 'cost of sales' is used to determine stock turnover.

Question 2

Describe why a high stock turnover is considered to be a good thing.

Question 3

Define the term 'bad debt'. Explain how the recognition of bad debts will affect the debtors days ratio for a firm.

Question 4

Explain why a high debtor days' ratio figure is considered a bad thing for a company.

Question 5

'Ratios are symptoms of a situation'. Discuss.