Analysis and interpretation — IGCSE Accounting (0985) questions by topic
Analysis and interpretation asks you to calculate ratios such as trade receivables turnover and gross and profit margins, evaluate what a turnover figure means for a business's ability to pay suppliers, and suggest whether a bank should approve a loan based on the figures given. Calculate, suggest, identify, state and evaluate are the top command words, with evaluate tasks needing a for-and-against judgement grounded in the specific figures in the question.
Marks run from 1 to 20 across the 8 real questions here, from 2023 to 2025 papers. Practise the evaluate-level loan and liquidity questions by drafting a balanced answer and submitting it for instant marking, since the scheme rewards weighing points for and against rather than settling on only one side.
What examiners look for
- A recurring criticism is the formula for a ratio not being memorised, or terms such as capital employed and inventory turnover not being properly understood.
- Examiners note opening and closing inventory figures sometimes not identified correctly when margins were calculated, and candidates focusing on liquidity ratios rather than the gross and profit margins actually asked for.
- Few candidates argued the impact of a reduced selling price on gross profit, and some answers stated a point would be in the bank manager's interest without it being relevant to the question.
- Strong answers on a loan-approval question cited a reasonable repayment period and increased profits as points in favour, weighed against interest charges and the need for security as points against.
May–June 2025, Paper 11
A trader provided the following information for the year ended 31 December. $ --- --- total cash and credit purchases of goods for resale 150 000 cash purchases of goods for…
Answer this question and get it marked →The following information is taken from an income statement. $ --- --- cost of sales 15 000 gross profit 10 000 motor expenses 4000 general expenses 1000 What is the profit margin…
Answer this question and get it marked →The trade receivables turnover of a business is 42 days. Trade receivables are allowed 30 days to settle their accounts. The business has difficulty paying its credit suppliers.…
Answer this question and get it marked →May–June 2025, Paper 12
The following information is available at the end of Savid's first year of trading. $ --- --- Amount owed by credit customers 9600 Amount owed to credit suppliers 12 800 Total…
Answer this question and get it marked →Which statement is a limitation of the comparison of the accounting ratios of different businesses? A Accounting records include a value for the skills of the workforce. B…
Answer this question and get it marked →May–June 2024, Paper 22
Ajay is a retailer. He has provided the following information. $ --- --- At 1 April 2023 — Inventory 5 200 At 1 April 2023 — Trade receivables 6 875 At 1 April 2023 — Cash at bank…
Answer this question and get it marked →October–November 2024, Paper 22
Azim is a wholesaler. He sells goods on both cash and credit basis. Terms of business for all credit sales is 30 days. Azim has provided the following information for the year…
Answer this question and get it marked →October–November 2023, Paper 22
Nala is a retailer who sells toys and games. All sales are on a cash basis and all purchases are on credit. She has provided the following information. $ --- --- At 31 August 2023…
Answer this question and get it marked →