Kramizo
Log inSign up free
HomeCXC CAPE AccountingRatio analysis and interpretation
CXC CAPE · · Accounting

Ratio analysis and interpretation
Practice Questions

40 CXC CAPE Accounting questions on Ratio analysis and interpretation, each with instant feedback and a full examiner-style mark scheme.

⚡ Start Quiz on Ratio analysis and interpretation📖 Read Revision Notes
✨ Revision guide includes key terms, worked examples and exam technique for Ratio analysis and interpretation.

Try 2 sample questions on Ratio analysis and interpretation

Question 1 · 1 mark · Difficulty 1/3

How is gross margin calculated?

  1. Gross profit divided by cost of sales, times 100
  2. Gross profit divided by revenue, times 100
  3. Revenue divided by gross profit, times 100
  4. Gross profit divided by capital employed, times 100
Show answer & explanation
✓ Answer: BGross profit divided by revenue, times 100
Award 1 mark. It isolates the trading margin, before any running costs are taken into account.
Question 2 · 1 mark · Difficulty 1/3

What does the acid test ratio remove from current assets?

  1. Cash at bank
  2. Receivables
  3. Prepayments
  4. Inventory
Show answer & explanation
✓ Answer: DInventory
Award 1 mark. Inventory must be sold before it becomes cash, and in a downturn that is exactly when it will not sell.
⚡ Start a Quiz on Ratio analysis and interpretation
20 questions · 25 min · free

CXC CAPE Accounting: Ratio analysis and interpretation FAQ

Is Kramizo free for CXC CAPE students preparing for Accounting?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Ratio analysis and interpretation practice with other Accounting topics or even switch to a totally different CXC CAPE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Ratio analysis and interpretation questions aligned to the official CXC CAPE Accounting syllabus?
Every question is written against the published CXC CAPE Accounting specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CXC CAPE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CXC CAPE.
How is Ratio analysis and interpretation typically tested on CXC CAPE Accounting papers?
Ratio analysis and interpretation appears across multiple question types on real CXC CAPE Accounting papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

Lock in Ratio analysis and interpretation before exam day.

Start practising in 30 seconds — no card required.

⚡ Start Quiz Free →