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SingaporeAccountingQuick questions
Financial Statement Analysis and Ratios
Quick questions on Profitability ratios explained: O-Level Principles of Accounts
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is gross profit margin?Show answer
This shows the profit made on trading, before other expenses, as a percentage of sales:
What is profit margin?Show answer
This shows the final profit, after all expenses, as a percentage of sales:
What is q1?Show answer
Sales are \50,000\. State the gross profit margin. [2 marks]
What is q2?Show answer
Profit for the year is \24,000\. State the return on capital employed. [2 marks]
What is q3?Show answer
The gross margin is steady but the profit margin has fallen. State the likely cause. [1 mark]
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