A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2022 · 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?
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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
A: non-current asset turnover: decrease; return on capital employed: decrease
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