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A-LevelAccountingInterpretation of Financial StatementsMay/June 2012Paper 1 Q191 Mark

The table gives information about a company. year 1 $ year 2 $ revenue 150 000 200 000 cost of sales 105 000 130 000 45 000 70 000 administration and distribution expenses 27 000 47 500 profit from operations 18 000 22 500 non-current assets 120 000 110 000 net current assets 30 000 40 000 non-current liabilities (50 000) (10 000) What happened to gross profit margin and return on capital employed in year 2? gross profit margin return on capital employed decreased decreased increased decreased decreased increased increased increased

Adecreased decreased
Bincreased decreased
Cdecreased increased
Dincreased increased

✓ Correct Answer

The correct answer is D. This question tests the candidate's understanding of interpretation of financial statements within the Accountingsyllabus. The examiner's mark scheme requires...

📋 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...

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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) May/June 2012 examination, Paper 1 Variant 2. It tests the topic of Interpretation of Financial Statements and is worth 1 mark.

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