A-LevelAccountingRatio AnalysisFeb/Mar 2022Paper 1 Q211 Mark

The following information for a limited company at 31 December 2021 is available. ordinary share capital $300000, retained earnings $110000, 8% debenture $100000. Retained earnings at 1 January 2021 were $82000. An interim dividend of $45000 was paid on 1 May 2021. What was the return on capital employed for the year ended 31 December 2021?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is D: 15.88%.

Q: What topic does this question test?

This question tests Ratio Analysis in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A6.83%

B7.06%

C14.31%

D15.88%

✓ Correct Answer

The correct answer is D: 15.88%

📋 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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About This A-Level Accounting Question

Topic

This multiple-choice question tests Ratio Analysis in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2022 examination, Paper 1 Variant 2.

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