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A-LevelAccountingAnalysis and communication of accounting information9706/12 · Feb/Mar 2016 · 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

D: return earned on funds invested by business owners and long-term lenders

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Topic
Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Feb/Mar 2016 Paper 1 Variant 2, question 19.

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