Accounting Multiple Choice Question – 5 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

  • Long-Term Assets £300k
  • Inventory £85k
  • Accounts Receivables £40k
  • Bank Account £10k
  • Cash £5K
  • Accounts Payable £65k
  • Long-term Bank Loan £700k
  • Reserves £125k
  • Share Capital £100kRevenue £3,800k
  • Cost-of-Sales £2,400k
  • Net Profit Margin £300k
  • Purchases £1,200k

What is Woodpecker’s ROCE percentage?

Select ONE answer:

  1. 34.86
  2. 36.84
  3. 7.89
  4. 58.33
  5. 32.43

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 5 – Return on Capital Employed. Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed by comparing net operating profit to capital employed. £300k / (£700k + £125k + £100k) * 100 = 32.43%

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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