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?

Q: What topic does this question test?

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

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: non-current asset turnover: decrease; return on capital employed: decrease

📋 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 Analysis and 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 2022 examination, Paper 1 Variant 2.

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