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A-LevelAccountingAnalysis and Interpretation of Financial Statements (Profitability Ratios)May/June 2017Paper 1 Q191 Mark

A company provides the following information. $ profit from operations 16000 finance costs 4000 ordinary share capital ($1 shares) 50000 non-current liabilities 4000 retained earnings 20 000 What is the return on capital employed?

A16.22%
B17.14%
C21.62%
D22.86%

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of analysis and interpretation of financial statements (profitability ratios) within the Accountingsyllabus. The examiner's mark scheme requires...

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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 2017 examination, Paper 1 Variant 2. It tests the topic of Analysis and Interpretation of Financial Statements (Profitability Ratios) and is worth 1 mark.

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