Accounting Multiple Choice Question – 17 March 2022

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

In 2020 a company was entirely financed by its equity and reserves which total £1,000,000.

Its return on capital employed (ROCE) was 28%.

On 1 January 2021 the company issued a 10% debenture of £300,000.

During 2021 the profit from operations increased by 20%.

No dividends were paid.

What was the ROCE for 2021?

Select ONE answer:

  1. 19.1%
  2. 20.9%
  3. 23.4%
  4. 25.8%

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 2

  1. Not correct
  2. Correct ==> 28% of £1M = £280k * 1.2 = £336K / (£1,000K + £300k + £336k)
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

%d bloggers like this: