O-LevelAccountingAnalysis and interpretation7707/11 · Oct/Nov 2011 · Q281 Mark

Simran's profit for the year, before interest, was $18 000. Interest payable amounted to $2000. The balance on her capital account was $80 000 and she had a long-term loan of $20 000. What was her profit for the year as a percentage of owner's equity?

A16%

B18%

C20%

D22.5%

✓ Correct answer

C: 20%

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2011 Paper 1 Variant 1, question 28.

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