QUESTION: 85

Refer to the exhibit.

The following ratios have been calculated for A Limited:

The return on capital employed for A Limited is therefore

30%
25%
7.5%
15%

Answer(s): A

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QUESTION: 86

Accounting standards are used to produce the financial statements of all business entities.

Which ONE of the following best describes why accounting standards are needed?

To provide information for tax purposes
To provide information required by law
To provide information that fairly represents the performance and position of the entity
To provide information for shareholders

Answer(s): C

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QUESTION: 87

Which one of the following is an error of principle?

A gas bill credited to the gas account and debited to the bank account
The purchase of a non-current asset credited to the asset at cost account and debited to the payable's account
The purchase of a non-current asset debited to the purchases account and credited to the payable's account
The payment of wages debited and credited to the correct accounts, but using the wrong amount

Answer(s): C

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