A-LevelAccountingFinancial Statements AnalysisMay/June 2014Paper 1 Q251 Mark
A company's non-current asset turnover figure rises from 3.4 times in Year 1 to 4 times in Year 2. Sales revenue has been constant. What explains the change?
AThe cost of repairs to non-current assets had decreased.
BThe cost of repairs to non-current assets had increased.
CThe depreciation charge for the year was higher than the cost of non-current assets purchased.
DThe depreciation charge for the year was lower than the cost of non-current assets purchased.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of financial statements analysis 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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