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?

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

The correct answer is D: 3.74 times.

Q: What topic does this question test?

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

A3.09 times

B3.16 times

C3.67 times

D3.74 times

✓ Correct Answer

The correct answer is D: 3.74 times

📋 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.

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About This A-Level Accounting Question

Topic

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

Source

This question appeared in the Cambridge A-Level Accounting May/June 2021 examination, Paper 1 Variant 2.

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