O-LevelAccountingAnalysis and interpretation7707/13 · Oct/Nov 2023 · Q331 Mark

CD Limited took out a long-term bank loan and used part of the funds to pay some of its credit suppliers early. How did this affect the trade payables turnover (days) and the return on capital employed (ROCE)? [Table with columns: trade payables turnover (days), return on capital employed (ROCE). Rows for options A, B, C, D]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Adecrease, decrease

Bdecrease, increase

Cincrease, decrease

Dincrease, increase

✓ Correct answer

A: decrease, decrease

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2023 Paper 1 Variant 3, question 33.

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