
Alex plc revalues its buildings upwards.
What is the impact on the following ratios?
Select ONE answer:
- Gearing – Decrease / Return on capital employed – Decrease
- Gearing – Decrease / Return on capital employed – Increase
- Gearing – Increase / Return on capital employed – Decrease
- Gearing – Increase / Return on capital employed – Increase
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
- Correct
- Not correct
- Not correct
- Not correct

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