Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A business obtained a $40000 loan for five years. The money was deposited into the bank current account. What effect did the loan have?

  • Acurrent ratio: decreased; return on capital employed: decreased
  • Bcurrent ratio: decreased; return on capital employed: increased
  • Ccurrent ratio: increased; return on capital employed: decreased
  • Dcurrent ratio: increased; return on capital employed: increased

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI