Question: question .9 The first step in the interpretation process should be: Group of answer choices A review of the auditors report The calculation of as

question .9

The first step in the interpretation process should be:

Group of answer choices

A review of the auditors report

The calculation of as many ratios as possible

Vertical Analysis of Financial Statements

A general overview of the financial statements to be analysed

question 1.

The following information is available about two companies, A Ltd and B Ltd.

A Ltd

B Ltd

Sales

2,000

2,000

Cost of sales

1,000

500

Trade receivable (year end)

250

150

Which of the following statements is correct in making a comparison of company A with company B?

Group of answer choices

Company A has the higher gross profit margin percentage and the shorter trade receivables settlement period

Company A has the lower gross profit margin percentage and the longer trade receivables settlement period

Company A has the higher gross profit margin percentage and the longer trade receivables settlement period

Company A has the lower gross profit margin percentage and the shorter trade receivables settlement period

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