A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2014 · 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
C: The depreciation charge for the year was higher than the cost of non-current assets purchased.
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