A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2017 · Q221 Mark

The financial statements of a company showed the following. [Table: current liabilities $15000, non-current liabilities $40000, ordinary shares $120000, general reserve $10000, retained earnings $46000, interest paid $11000] Profit for the year was $23000. What was the return on capital employed?

A10.65%

B13.07%

C15.74%

D19.32%

✓ Correct answer

C: 15.74%

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2017 Paper 1 Variant 2, question 22.

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