A-LevelAccountingAnalysis and Interpretation of Financial StatementsOct/Nov 2022Paper 1 Q201 Mark
H Limited uses ratio analysis to analyse its financial performance. On 31 January 2021 the company prepared draft financial statements before it revalued its premises upwards. How did this revaluation affect the company's ratios?
Anon-current asset turnover: decrease; return on capital employed: decrease
Bnon-current asset turnover: decrease; return on capital employed: increase
Cnon-current asset turnover: increase; return on capital employed: decrease
Dnon-current asset turnover: increase; return on capital employed: increase
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of analysis and interpretation of financial statements within the Accountingsyllabus. The examiner's mark scheme requires...
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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...
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