Accounting Multiple Choice Question – 16 July 2023

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

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Alex plc revalues its buildings upwards.

What is the impact on the following ratios?

Select ONE answer:

  1. Gearing – Decrease / Return on capital employed – Decrease
  2. Gearing – Decrease / Return on capital employed – Increase
  3. Gearing – Increase / Return on capital employed – Decrease
  4. 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

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

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