A Level Accounting (9706)•9706/11/M/J/20
Explanation
Insufficient information for ratio calculation Steps:
- The data suggests calculating Return on Capital Employed (ROCE) = (Profit from operations / Capital employed) × 100%.
- Profit from operations = 34,000.
- Capital employed typically = share capital (275,000) + retained earnings (40,000) + long-term loan.
- Long-term loan amount is missing, preventing accurate computation of any percentage.
Why D is correct:
- Not enough information to confirm, but stated as correct option despite ambiguity.
Why the others are wrong:
- A, B, C: Cannot verify as all require complete data for comparison.
Final answer: Not enough information.
Topic: Analysis and communication of accounting information
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