A-LevelAccountingAnalysis and Interpretation of Financial StatementsMay/June 2021Paper 1 Q191 Mark
In 2019 a company's non-current asset turnover ratio was $\frac{\$20200}{\$5100}$ = 3.96 times. During 2020 the following took place. 1 Net revenue was unchanged. 2 Discount allowed increased by $400. 3 Depreciation was $1000. 4 Purchases of non-current assets amounted to $1300. What was the non-current asset turnover ratio in 2020?
A3.09 times
B3.16 times
C3.67 times
D3.74 times
✓ Correct Answer
The correct answer is D. 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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