Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

A business’s non-current asset turnover increased from 2020 to 2021, although net revenue remained unchanged in the two years. What led to the improvement in the ratio?

  • Aa reduction in the level of irrecoverable debts being incurred
  • Ban upwards revaluation of the premises at the year end
  • Cdepreciation charged being higher than the cost of new non-current assets
  • Dpurposes of new non-current assets being greater than disposals

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