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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?

A6.83%
B7.06%
C14.31%
D15.88%

✓ Correct Answer

The correct answer is D. This question tests the candidate's understanding of 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 2022 examination, Paper 1 Variant 2. It tests the topic of Ratio Analysis and is worth 1 mark.

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