Finance and accounts

Paper labels are an unofficial, independently authored grouping, applied only where a question's own format genuinely matches a real paper convention (such as IB Mathematics AA's non-calculator/calculator split). They do not reproduce any exam board's real paper numbering or mark allocation, and uncertain questions are labelled general practice instead.

• 9A business reports a healthy net profit for the year on its income statement, yet its bank account is nearly empty and it is struggling to pay suppliers on time. (a) Explain how a business can be profitable on paper but still face a cash-flow crisis. (b) Suggest one specific reason, relating to how customers or inventory are managed, that could explain this business's situation.✓ ReviewedPaper 1 styleEasy3 marksNo calculator+
• 10Marking analysis: A learner attempts the following task: “A business reports a healthy net profit for the year on its income statement, yet its bank account is nearly empty and it is struggling to pay suppliers on time. (a) Explain how a business can be profitable on paper but still face a cash-flow crisis. (b) Suggest one specific reason, relating to how customers or inventory are managed, that could explain this business's situation.” Their response addresses only this point: “Explains that profit is an accounting measure of revenue earned minus expenses incurred over a period, while cash flow measures the actual timing of money moving in and out of the bank account, and the two do not always occur at the same time.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.✓ ReviewedMarking analysisEasy3 marksNo calculator+
• 11A business reports current assets of $60,000 and current liabilities of $40,000 on its statement of financial position. (a) Calculate the business's working capital. (b) State what a negative value for working capital would indicate about a business's ability to meet its short-term obligations. (c) Suggest one action a business with negative working capital could take to improve it.✓ ReviewedPaper 2 styleEasy3 marksCalculator+
• 12Marking analysis: A learner attempts the following task: “A business reports current assets of $60,000 and current liabilities of $40,000 on its statement of financial position. (a) Calculate the business's working capital. (b) State what a negative value for working capital would indicate about a business's ability to meet its short-term obligations. (c) Suggest one action a business with negative working capital could take to improve it.” Their response addresses only this point: “Calculates working capital = current assets − current liabilities = 60,000 − 40,000 = $20,000.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.✓ ReviewedMarking analysisEasy3 marksCalculator+
• 13A business has current assets of $60,000 and current liabilities of $40,000. (a) Calculate the business's current ratio. (b) State the range within which a current ratio is generally considered healthy. (c) State whether this business's current ratio suggests it is within, below, or above that generally healthy range.✓ ReviewedPaper 2 styleEasy3 marksCalculator+
• 14Marking analysis: A learner attempts the following task: “A business has current assets of $60,000 and current liabilities of $40,000. (a) Calculate the business's current ratio. (b) State the range within which a current ratio is generally considered healthy. (c) State whether this business's current ratio suggests it is within, below, or above that generally healthy range.” Their response addresses only this point: “Calculates the current ratio = current assets ÷ current liabilities = 60,000 ÷ 40,000 = 1.5 (or 1.5:1).” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.✓ ReviewedMarking analysisEasy3 marksCalculator+
• 15The same business has current assets of $60,000, of which $20,000 is inventory, and current liabilities of $40,000. (a) Calculate the business's acid test (quick) ratio. (b) Explain why the acid test ratio is considered a more cautious measure of liquidity than the current ratio.✓ ReviewedPaper 2 styleEasy3 marksCalculator+
• 16Marking analysis: A learner attempts the following task: “The same business has current assets of $60,000, of which $20,000 is inventory, and current liabilities of $40,000. (a) Calculate the business's acid test (quick) ratio. (b) Explain why the acid test ratio is considered a more cautious measure of liquidity than the current ratio.” Their response addresses only this point: “Calculates quick assets = current assets − inventory = 60,000 − 20,000 = $40,000.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.✓ ReviewedMarking analysisEasy3 marksCalculator+
• 29A business's statement of financial position must always satisfy the accounting equation: Assets = Liabilities + Equity. At the end of the year, the business reports total assets of $500,000 and total liabilities of $180,000. (a) Calculate the business's total equity. (b) Explain, in one sentence, what the equity figure represents.✓ ReviewedPaper 2 styleEasy3 marksCalculator+
• 30Marking analysis: A learner attempts the following task: “A business's statement of financial position must always satisfy the accounting equation: Assets = Liabilities + Equity. At the end of the year, the business reports total assets of $500,000 and total liabilities of $180,000. (a) Calculate the business's total equity. (b) Explain, in one sentence, what the equity figure represents.” Their response addresses only this point: “Rearranges the accounting equation to: Equity = Assets − Liabilities.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.✓ ReviewedMarking analysisEasy3 marksCalculator+