O-LevelAccountingAnalysis and interpretationOct/Nov 2023Paper 1 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]
Adecrease, decrease
Bdecrease, increase
Cincrease, decrease
Dincrease, increase
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of analysis and interpretation within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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