I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider


QUESTION  Interpreting information VII



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QUESTION 

Interpreting information VII

 

ROCE has increased from 28% in 20X2 to 35% in 20X3.  

Which of the following statements relating to this increase is/are correct? 

An increase in profit margin in 20X3 could account for the increase in ROCE. 



The increase suggests the company is more efficient in employing its resources in 20X3 compared 

to 20X2. 

If profit margin has remained constant, the increase in ROCE suggests a decrease in asset 



turnover. 

1 and 2 only 



2 and 3 only 

1 and 3 only 



All three statements are correct 

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CHAPTER 26  

//

  INTERPRETATION OF FINANCIAL STATEMENTS 




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