A-LevelAccountingAnalysis and Interpretation of Financial StatementsOct/Nov 2010Paper 1 Q241 Mark
The table shows the year end information for three companies. [Table showing company X with sales $500 000, operating profit as % of all sales 15, capital employed $100 000; company Y with sales $200 000, operating profit as % of all sales 8, capital employed $40 000; company Z with sales $400 000, operating profit as % of all sales 10, capital employed $80 000] How should the companies rank in order of return on the actual capital employed? [Table with columns 'highest' and 'lowest', and rows for options A, B, C, D]
AX, Z, Y
BY, Z, X
CZ, X, Y
DZ, Y, X
✓ Correct Answer
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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