Cambridge IGCSE Accounting practice
Try the question first, then check the answer and practise the same topic again.
At a glance
MCQ
Type
cambridge_mcq
Style
Topic
Inter-firm comparison
Exam-style question
What is a primary challenge when comparing financial ratios of different firms?.
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Common mistake
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Flashcard 1 of 6
Question 1 of 5
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Data Table
The table below shows the financial data for two companies in the same industry.
| Company A | Company B |
|---|---|
| Revenue: $500,000 | Revenue: $600,000 |
| Net Profit: $50,000 | Net Profit: $70,000 |
| Total Assets: $300,000 | Total Assets: $400,000 |
| Current Liabilities: $100,000 | Current Liabilities: $150,000 |
Calculate the net profit margin for both companies.
Aim for approximately 2 distinct marking points.