Accounting Multiple Choice Question – 15 May 2022

The financial statements of a company include the following:

• profit for the year – £245,000
• finance costs – £120,000
• preference share capital – £220,000
• ordinary share capital – £850,000
• general reserves – £140,000
• retained earnings – £260,000

What is the return on capital employed (ROCE)?

Select ONE answer:

1. 16.67%
2. 22.90%
3. 24.83%
4. 34.11%

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 ==> (245 + 120) / (220 + 850 + 140 + 260)
4. Not correct

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