d2014 mock simulation

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taskey
taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
in AAT Level 4 (Level 8 in Scotland)
stuck on a question

when doing a recommendation (or not) for credit - what ratios would you use to determine if credit can be given?

i am thinking

gross margin
operating margin
debtor days
creditor days

will this be enough to base a recommendation on or are there any others i could use?

thanks

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  • welshwizard
    welshwizard Registered Posts: 465 Dedicated contributor 🦉
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    How about a mixture of:

    Liquidity Ratio
    Profitability Ratio
    Rebt Ratio
    Cashflow Ratio

    Maybe one of each

    :)
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
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    ok, thanks, seems a bit long winded with all of that but i suppose the more i put in, the less i will fail on lol

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