Accounting Multiple Choice Question – 17 March 2018

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

Accounting

Wood Angel Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

  • Long-Term Assets £400k
  • Inventory £385k
  • Accounts Receivables £340k
  • Bank Account £210k
  • Cash £50K
  • Accounts Payable £365k
  • Long-term Bank Loan £1800k
  • Reserves  £250k
  • Share Capital £200k
  • Revenue  £5,800k
  • Cost-of-Sales  £4,400k
  • Net Profit Margin  £600k
  • Purchases  £2,800k

What is Wood Angel’s ROCE Percentage?

Select ONE answer:

  1. 13.79
  2. 24.14
  3. 26.67
  4. 31.82
  5. 10.35

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 3 – 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. £600k / (£1800k + £250k + £200k) * 100 = 26.67%

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Author: stuart001uk2014

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

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