The year-end statement of financial position of X Limited at 31 December shows the following:
$000
non-current assets 1350
current assets 140
ordinary share capital 900
general reserve 150
long-term loan 200
current liabilities 90
retained earnings 150
The profit from operations for the year was $65000 and finance costs were $20000. What was the return on capital employed for the year?

Q: What topic does this question test?

This question tests Analysis and Interpretation of Financial Statements in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2023 examination, Paper 1 Variant 2 (9706_m23_qp_12.pdf).

Question

The year-end statement of financial position of X Limited at 31 December shows the following: 
$000 
non-current assets 1350
current assets 140
ordinary share capital 900
general reserve 150
long-term loan 200
current liabilities 90
retained earnings 150
The profit from operations for the year was $65000 and finance costs were $20000. What was the return on capital employed for the year?

Oracle Prep · Accepted Answer

The correct answer is B: 4.64%.

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