A-LevelAccountingAnalysis and Interpretation of Financial StatementsMay/June 2019Paper 1 Q201 Mark
On 1 January 2018 a business expected to have sales for the year ended 31 December 2018 of $450 000. Its non-current assets at that date were $306000. On 1 July 2018 it purchased new machinery at a cost of $180000, in order to increase its sales by an extra $20000 each month. What was the rate of non-current asset turnover in 2018? (Ignore depreciation.)
A1.17 times
B1.42 times
C1.44 times
D1.74 times
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The correct answer is A. This question tests the candidate's understanding of analysis and interpretation of financial statements 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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