In 200X,the Profit Before Tax = €95,interest Charged = €20,Capital

question 4

Multiple Choice

In 200X,the profit before tax = €95,interest charged = €20,Capital employed = €1500,total current liabilities = €250 & Long term debt = €110.Calculate the return on equity.

• A)6.8%
• B)7.1%
• C)7.7%
• D)9.2%

---

Definitions:

Long-term Prepayment

Payments made in advance for goods or services to be received or used in future periods, extending beyond the current accounting year.

Accounting Transaction

A financial event that changes the balance of two or more accounts in the ledger.

Accounting Time Period

A specific duration of time for which financial statements are prepared, typically a quarter or a year.

Depreciation Expense

A rephrased definition: The charge to income, representing the allocation of the cost of an asset over its useful life during a specific period.