Analysis and interpretation: past paper questions
Real questions on analysis and interpretation
The newest 20 of 92 written questions, plus 88 multiple-choice. Open one to see it on the real paper.
- 7707/22 · October/November 2025 · Q4a[10]
Complete the following table by indicating whether the ratio has improved or deteriorated at the end of year 2, and give two reasons which may have caused the change. The Return on capital employed (ROCE) has been completed as an example. Ratio Return on capital employed (ROCE) Improved or deteriorated Deteriorated Pos...
See it on the paper → - 7707/22 · October/November 2025 · Q4d[5]
Advise the directors of AY Limited whether or not delaying payments to their trade payables would be a good way to secure the purchase of the equipment. Justify your answer by providing points for and against delaying payments to their trade payables.
See it on the paper → - 7707/23 · October/November 2025 · Q3a[8]
Complete the following table. Return on capital employed (ROCE) Workings Rate of inventory turnover Answer (correct to two decimal places) Workings Trade receivables turnover (days) Answer (round up to the next whole day) Workings Trade payables turnover (days) Answer (round up to the next whole day) Workings Current r...
See it on the paper → - 7707/23 · October/November 2025 · Q3b(i)[2]
Suggest two ways that Rushil might improve his return on capital employed (ROCE).
See it on the paper → - 7707/23 · October/November 2025 · Q3b(ii)[2]
Included in Rushil’s closing inventory valuation were some items that had been damaged. These were included at a reduced value. REQUIRED Suggest two ways that Rushil might improve his inventory turnover rate. (ii)
See it on the paper → - 7707/21 · May/June 2025 · Q2d[5]
Advise Mo whether or not he should open the shop. Justify your answer by providing advantages and disadvantages of opening the shop. Mo owns his farmland and rents out one of his fields to a neighbouring farmer, Barry, for $80 a month. Barry pays Mo by bank transfer. On 1 January 2024, Barry owed Mo two months’ rent. D...
See it on the paper → - 7707/21 · May/June 2025 · Q2f(i)[1]
Mo’s gross margin is higher than Barry’s
See it on the paper → - 7707/21 · May/June 2025 · Q4d[3]
The directors of H Limited would like to expand the business. They are considering issuing debentures for $60 000 to fund an expansion. These debentures would carry interest of 3%. REQUIRED (d) Calculate the return on capital employed for the year ended 30 April 2025. State your answer to two decimal places.
See it on the paper → - 7707/21 · May/June 2025 · Q4e[5]
Advise the directors whether or not they should issue the debentures to fund an expansion. Justify your answer by providing two points for and two points against issuing the debentures to fund an expansion. Question 5 starts on page 16.
See it on the paper → - 7707/22 · May/June 2025 · Q4b[5]
$ Original profit for the year 12 930 Profit for the year after correcting errors (b) Calculate Bilal’s profit for the year after correcting errors 1–5.
See it on the paper → - 7707/22 · May/June 2025 · Q5c[3]
Calculate Rexford’s trade receivables at 31 December 2024. Rexford is considering employing a part-time bookkeeper. The bookkeeper would be paid $5000 per annum. REQUIRED
See it on the paper → - 7707/22 · October/November 2024 · Q2e(ii)[2]
Complete the table by placing a tick (✓) to show what effect creating a provision for doubtful debts would have on Ben’s profit for the year, trade receivables and cash at bank. Profit for the year Trade receivables Cash at bank Increase No effect Decrease
See it on the paper → - 7707/22 · October/November 2024 · Q4d[7]
Prepare the statement of changes in equity for Y limited for the year ended 31 December 2023 Y Limited Statement of changes in equity for the year ended 31 December 2023 Ordinary Share Capital $ General Reserve $ Retained Earnings $ Total On 1 January 2023 On 31 December 2023 $
See it on the paper → - 7707/22 · October/November 2024 · Q4e[2]
Using the information from your statement of changes in equity in 4(d), prepare an extract from the statement of financial position at 31 December 2023 showing the equity and reserves section only. Y Limited Extract from Statement of financial position at 31 December 2023 $ The company is considering expansion but need...
See it on the paper → - 7707/22 · October/November 2024 · Q5a[7]
Using the information provided, calculate the following ratios for the year ended 31 December 2023. Show your workings. Answer Workings Inventory turnover (correct to 2 decimal places) Trade receivables turnover (round up your answer to the nearest whole day) Trade payables turnover (round up your answer to the nearest...
See it on the paper → - 7707/22 · October/November 2024 · Q5b[5]
Advise Azim whether he should appoint a debt collection company. Justify your answer with two advantages and two disadvantages.
See it on the paper → - 7707/22 · October/November 2024 · Q5c[2]
Suggest two other measures that Azim might take to reduce his trade receivables turnover period. 1. 2. Azim had calculated his gross profit margin and profit margin for the year ended 31 December 2023. He wants to compare these to his competitor Baher who has a similar sized business. Azim 33% 10% Gross profit margin P...
See it on the paper → - 7707/22 · October/November 2024 · Q5d(i)[1]
Gross profit margin
See it on the paper → - 7707/22 · October/November 2024 · Q5d(ii)[1]
Profit margin During the year ended 31 December 2023, Azim took goods for his own use, $340, but had not entered this in his accounting records. To correct this error, Azim made a year-end adjustment. REQUIRED:
See it on the paper → - 7707/23 · October/November 2024 · Q5c[5]
Advise G Limited whether to employ the consultant to review their credit control policy. Justify your answer with two advantages and two disadvantages.
See it on the paper →
What examiners said
Very few correct answers were seen and the importance of key words such as ‘material’ and ‘significant’ were not offered. Many attempted to describe compensating errors or errors not affecting the trial balance.
— Examiner report, October/November 2023, 7707/22 Q4(d) (Cambridge)
This question asked candidates to calculate five accounting ratios. These ratios are fundamental to enable meaningful interpretation of financial information to be carried out. For many candidates, the formula had not been committed to memory or lacked the understanding of the term capital employed or how inventory turnover could be calculated. A common error when calculating margins was not ensur...
— Examiner report, October/November 2023, 7707/22 Q5(a) (Cambridge)
This was not answered well. Many candidates focused on the ratios in part (a) and the lack of liquidity in the business. The thrust of the question related to the gross and profit margins and the possible reason why they may be different to that of a nearest competitor. The reduction in selling price and its outcome upon gross profit could be argued either way but few answers followed this line of...
— Examiner report, October/November 2023, 7707/22 Q5(b) (Cambridge)
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