This unit focuses first of all on profitability ratios with plenty of practice calculation gross profit as % of sales revenue, profit for the year as % of sales revenue, mark-up ratio and return on equity employed ratio. This is followed by liquidity ratio practice tasks (current ratio and acid test ratio) and efficiency ratios (rate of inventory turnover). There are tasks on analysing and comparing 2 – 3 years of financial accounts and coming up with solutions as to how to improve performance. At the end of the unit, there are general theory questions followed by exam style questions.
** Please note that solutions, a paper based version of these tasks, a theory note and information on the new international accounting terminology are included in the purchase price **