O-LevelAccountingAnalysis and interpretationOct/Nov 2021Paper 1 Q321 Mark
Sam and Rob each own a trading business. The income of each business is solely from the sale of goods. They provided the following information for the year ended 30 June 2020. [Figure showing table with return on capital employed, gross margin, profit margin, current ratio for Sam and Rob]
ARob will find it easy to pay his current liabilities.
BRob's expenses are a higher proportion of his sales.
CSam is not employing his capital effectively.
DSam's goods are sold at a higher price.
✓ Correct Answer
The correct answer is B: Rob's expenses are a higher proportion of his sales.
📋 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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