KASNEB CPA Foundation Level (Kenya) · Financial Accounting

Interpretation of accounts

21 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 21 questions

  1. Trade receivables are KSh 120,000 and annual credit sales KSh 1,460,000. What is the receivables collection period in days (365 days a year)?
  2. Trade receivables are KSh 200,000 and annual credit sales KSh 2,190,000. What is the receivables collection period in days (365 days a year)?
  3. Trade receivables are KSh 90,000 and annual credit sales KSh 1,095,000. What is the receivables collection period in days (365 days a year)?
  4. Trade receivables are KSh 150,000 and annual credit sales KSh 1,825,000. What is the receivables collection period in days (365 days a year)?
  5. A company's profit before interest and tax is KSh 240,000 and its capital employed is KSh 1,200,000. What is the return on capital employed?
  6. A company's profit before interest and tax is KSh 450,000 and its capital employed is KSh 1,500,000. What is the return on capital employed?
  7. A company's profit before interest and tax is KSh 180,000 and its capital employed is KSh 900,000. What is the return on capital employed?
  8. A company's profit before interest and tax is KSh 330,000 and its capital employed is KSh 1,100,000. What is the return on capital employed?
  9. A company has long-term loans of KSh 400,000 and shareholders' equity of KSh 800,000. What is the gearing ratio (debt as a percentage of debt plus equity)?
  10. A company has long-term loans of KSh 300,000 and shareholders' equity of KSh 900,000. What is the gearing ratio (debt as a percentage of debt plus equity)?
  11. A company has long-term loans of KSh 600,000 and shareholders' equity of KSh 900,000. What is the gearing ratio (debt as a percentage of debt plus equity)?
  12. A company has long-term loans of KSh 250,000 and shareholders' equity of KSh 1,000,000. What is the gearing ratio (debt as a percentage of debt plus equity)?
  13. A company's profit after tax available to ordinary shareholders is KSh 900,000 and there are 300,000 ordinary shares. What is the earnings per share?
  14. A company's profit after tax available to ordinary shareholders is KSh 1,200,000 and there are 400,000 ordinary shares. What is the earnings per share?
  15. A company's profit after tax available to ordinary shareholders is KSh 450,000 and there are 150,000 ordinary shares. What is the earnings per share?
  16. A company's profit after tax available to ordinary shareholders is KSh 720,000 and there are 240,000 ordinary shares. What is the earnings per share?
  17. A company's profit after tax available to ordinary shareholders is KSh 350,000 and there are 100,000 ordinary shares. What is the earnings per share?
  18. A share has a market price of KSh 120 and earnings per share of KSh 10. What is its price-earnings ratio?
  19. A share has a market price of KSh 90 and earnings per share of KSh 6. What is its price-earnings ratio?
  20. A share has a market price of KSh 200 and earnings per share of KSh 16. What is its price-earnings ratio?
  21. A share has a market price of KSh 75 and earnings per share of KSh 5. What is its price-earnings ratio?

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