A-LevelAccountingInterpretation of Financial StatementsOct/Nov 2020Paper 1 Q201 Mark

A company's financial statements for the year ended 31 December showed the following: $ issued share capital 150 000 non-current liabilities 280 000 reserves including retained earnings 250 000 The company's profit from operations was $160000 and the profit for the year was $120000. What was the company's return on capital employed?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is A: 23.5%.

Q: What topic does this question test?

This question tests Interpretation of Financial Statements in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A23.5%

B30.0%

C37.2%

D40.0%

✓ Correct Answer

The correct answer is A: 23.5%

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Interpretation of Financial Statements in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2020 examination, Paper 1 Variant 2.

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