Day: July 13, 2021

A company wants to increase its return on capital employed in the short term.

Which course of action will achieve this?

Select ONE answer:

1. invest in new plant and machinery
2. reduce the level of dividends paid to investors
3. reduce the level of overhead expenses
4. revalue freehold land and buildings upwards

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

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

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

The answer is 3

1. Not correct
2. Not correct
3. Correct 
4. Not correct

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