A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2021 · Q191 Mark
The non-current asset turnover of a business improved between 2020 and 2021, even though the net revenue was the same for both years. What caused the improvement in the ratio?
Areduction in the level of irrecoverable debts being incurred
Ban upwards revaluation of the premises at the year end
Cdepreciation charged being higher than the cost of new non-current assets
Dpurchases of new non-current assets being greater than disposals
✓ Correct answer
C: depreciation charged being higher than the cost of new non-current assets
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Analysis and communication of accounting information and see which topics are most likely to come up next.
Sign up free →