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Ratio analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Ratio analysis

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
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  • September 2, 2016 at 3:27 pm #337090
    lkl881024
    Member
    • Topics: 13
    • Replies: 5
    • ☆

    Dear Sir,

    For questions that require ratio analysis such as calculating the gross profit margin, shall we show the workings/calculations or formulas?

    If there are a few years of financial data in the question, can the comparison only done for the final year with first year?

    Some textbooks mention its pointless to show the calculations as it was a waste of time but some did say it was recommended to show the workings for all form of questions that require calculations as it is believe that examiner will award marks for these workings.

    Please kindly advise. Thanks in advance

    September 3, 2016 at 10:05 am #337251
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    I would usually show workings – it doesn’t take long and I think it’s a bit safer.

    If there are several years, start with opening and closing to get overall changes. If time then fill in the gaps.

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