Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

How could a business owner tell that he is earning a return on his investment?

  • AHis bank account is no longer overdrawn.
  • BHis drawings have increased.
  • CHis income statement shows a profit for the year.
  • DHis working capital has increased during the year.

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