A-LevelAccountingInterpretation of Financial Statements (Ratios)May/June 2018Paper 1 Q181 Mark

The following is an extract from an income statement. $ revenue 180000 costs of goods sold (75000) distribution costs (8000) administrative expenses (22000) profit from operations 75000 debenture interest (2500) profit for the year 72500 What was the operating expenses to revenue ratio?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is A: 16.7%.

Q: What topic does this question test?

This question tests Interpretation of Financial Statements (Ratios) in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A16.7%

B18.1%

C58.3%

D59.7%

✓ Correct Answer

The correct answer is A: 16.7%

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

🔒

Unlock the Examiner's Analysis

Join thousands of Cambridge students already using Oracle Prep

About This A-Level Accounting Question

Topic

This multiple-choice question tests Interpretation of Financial Statements (Ratios) in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2018 examination, Paper 1 Variant 2.

Practice on Oracle Prep

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers across 29 subjects.