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Exam-style practice

Inter-firm comparison answer explanations

Review worked answers and explanations for Inter-firm comparison. Aligned to Cambridge IGCSE Accounting.

Answer explanations

Question 1 of 2

Review the answer support, then move sideways through the set.

Paper 2 structured question: Inter-firm comparison

Paper 2Structured Written Paper2 marks

Data Table

Company Financial Data

The table below shows the financial data for two companies in the same industry.

Company ACompany B
Revenue: $500,000Revenue: $600,000
Net Profit: $50,000Net Profit: $70,000
Total Assets: $300,000Total Assets: $400,000
Current Liabilities: $100,000Current Liabilities: $150,000
  1. a

    Calculate the net profit margin for both companies.

    [2]