A-LevelAccountingFinancial Statements Analysis (Ratios)May/June 2011Paper 1 Q191 Mark

A company's profit from operations was $128 000. Interest payable was $8000. The following amounts were included in the company's balance sheet. $ non-current assets 485 000 net current assets 27 000 non current liabilities 80 000 How much is the return on the total capital employed?

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

The correct answer is D: 25.0%.

Q: What topic does this question test?

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

A20.3%

B21.6%

C23.4%

D25.0%

✓ Correct Answer

The correct answer is D: 25.0%

📋 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 Financial Statements Analysis (Ratios) in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2011 examination, Paper 1 Variant 2.

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