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

Accounting for non-current assets — practice question

H Limited makes use of ratio analysis to assess its financial performance. On 31 January 2021, the company drew up draft financial statements before it revalued its premises upwards. How did this revaluation affect the company's ratios?

  • Anon-current asset turnover decrease, return on capital employed decrease
  • Bnon-current asset turnover decrease, return on capital employed increase
  • Cnon-current asset turnover increase, return on capital employed decrease
  • Dnon-current asset turnover increase, return on capital employed increase

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