A-LevelAccountingInterpretation of Financial StatementsFeb/Mar 2025Paper 1 Q221 Mark
The accounting year of a company ends on 31 December. At the end of Year 1, the company was financed by equity of $850000 and there were no long-term borrowings. At the beginning of Year 2, a 6% debenture of $150000 was issued. Profit for the year for Year 2 was $58000 and dividends of $20000 were paid. What was the return on capital employed for Year 2?
A5.59%
B6.33%
C6.45%
D7.55%
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The correct answer is C. This question tests the candidate's understanding of interpretation of financial statements within the Accountingsyllabus. The examiner's mark scheme requires...
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