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A-LevelAccountingFinancial Statements Analysis (Ratio Analysis)Feb/Mar 2016Paper 1 Q191 Mark

What is measured by the return on capital employed ratio?

Apercentage of profit paid out as dividends only
Bpercentage of profit paid out as dividends and interest
Creturn earned on funds invested by business owners only
Dreturn earned on funds invested by business owners and long-term lenders

✓ Correct Answer

The correct answer is D. This question tests the candidate's understanding of financial statements analysis (ratio analysis) within the Accountingsyllabus. The examiner's mark scheme requires...

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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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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) Feb/Mar 2016 examination, Paper 1 Variant 2. It tests the topic of Financial Statements Analysis (Ratio Analysis) and is worth 1 mark.

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