AS & A Level / Business / Accounts, cash and financial health Question practice
Accounts, cash and financial health About this practice Original, unofficial practice. Evaluative marking points are indicative: credit equivalent justified arguments, one point per distinct criterion, without double counting.
Accept equivalent valid methods and supported interpretations that address the task. Award each mark once; matching the model wording is not required.
Business Accounts, cash and financial health
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1 Fictional case: a wholesaler records a credit sale today but receives cash next month. Explain why profit and cash flow can differ this month. Easy 2 marks No calculator + 2 Fictional case: opening cash is 8000, receipts 22000 and payments 27000. Calculate net cash flow and closing cash. Easy 2 marks Calculator + 3 Fictional case: current assets are 150000, including inventory of 60000; current liabilities are 75000. Calculate current and acid-test ratios, excluding only inventory for the acid test. Explain one limitation of the current ratio. Medium 4 marks Calculator + 4 Fictional case: revenue is 500000, cost of sales 300000, operating expenses 120000 and capital employed 400000. Calculate gross profit margin, operating profit margin and ROCE using operating profit; explain why comparison needs context. Medium 4 marks Calculator + 5 Fictional case: a fast-growing profitable wholesaler faces late customer payments and expanding inventories. Evaluate factoring receivables rather than a long-term bank loan to relieve cash pressure. Hard 4 marks No calculator + 6 Fictional case: a retailer improves its current ratio by borrowing long-term cash and holding it unused. Evaluate the claim that its underlying operating performance has therefore improved. Hard 4 marks No calculator + Self-assessed Not marked yet
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This is a self-study tool, not a certified answer key or a predicted AS & A Level grade.
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Original questions, not official past papers. Marking guidance is indicative, not an official answer key. Check your exam-board specification.
