Business Studies Multiple Choice Question – 17 December 2022

The information below is an extract from a company’s annual accounts.

• Current assets: £3 million
• Current liabilities: £2.4 million
• Non-current liabilities: £4.2 million
• Capital employed: £12 million

The company’s gearing ratio is?

Select ONE answer:

1. 35%
2. 25%
3. 20%
4. 5%

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 1

1. Correct – 4.2 / 12
2. Not correct
3. Not correct
4. Not correct

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