A-LevelAccountingInterpretation of Financial StatementsMay/June 2012Paper 1 Q221 Mark
The owner of a business has to decide whether to sell a particular type of product. Which ratio is the most useful in making the decision?
Acurrent ratio
Bgross profit ratio
Creturn on capital employed
Dtrade receivables turnover
✓ Correct Answer
The correct answer is B. 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep