Section A: Theory of Financial Accounting

Question 4

List six users of accounting information.
(b)        State the formula and the use of each of the following accounting ratios:
(i)         Quick ratio;
(ii)        Net profit margin;
(iii)       Total assets turnover;
(iv)       Creditors payment period (in days)

This question tested candidates’ ability to identify accounting ratios and its application to interpretation of financial statements.