2021 WAEC GCE Financial Accounting Questions And Answers
Financial Accounting Obj
FIN.ACCOUNT OBJ
1-10 BDCBBACACC
11-20 BBAABDDDCB
21-30 CBADBDAADB
31-40 BCBACBCAAA
41-50 DDCDCCBBDA
WAEC GCE Financial Accounting Questions and Answers 2021 Theory
(3a)
Accounting ratios are groups of metrics used to measure the efficiency and profitability of a company based on its financial reports. They provide a way of expressing the relationship between one accounting data point to another and are the basis of ratio analysis.
(3b)
(i)Inventory Turnover Ratio
(ii)Fixed Asset Turnover Ratio
(iii)Accounts Receivable Turnover
(3c)
(i)Activity Ratios help in comparison to businesses in the same line of operation.
(ii)Activity Ratios help in Problem identification c be done using the right and necessary corrections in the functioning of the business can be made.
(iii) Activity Ratios simplifies an analysis by providing the financial data in a simple format, which eventually helps in decision making.
(iv)Investors can rely on the information that Activity Ratios provide since it is based on numbers and is accurate.
(v)Activity ratios help in evaluating a business’s operating efficiency by analyzing fixed assets, inventories, and accounts receivables.
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