A company's 'Return on Capital Employed' (ROCE) improved from 12% to 15%. This indicates: MCQ with Answer and Explanation

Question

Share Report Error

A company's 'Return on Capital Employed' (ROCE) improved from 12% to 15%. This indicates:

A. Increase in debt

B. Decrease in profit

C. Better utilisation of capital

D. Decrease in efficiency

Answer: Option C

Solution (By JKSSB Mock Tests)

ROCE measures profitability relative to capital employed; increase signals improved efficiency.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

A 'Narration' in a journal entry is:

A. The ledger folio

B. A brief description of the transaction

C. The amount

D. The date of transaction

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Narration provides a short explanation of the transaction recorded.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

A compound journal entry is an entry that:

A. Involves more than one debit or more than one credit account

B. Corrects previous errors

C. Affects only two accounts

D. Is passed at the end of the year

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
A compound entry contains multiple debits and/or multiple credits, combining related transactions on the same date.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The term 'Substantive Testing' in audit refers to:

A. Testing the internal controls

B. Issuing the audit report

C. Planning the audit

D. Testing the details of balances and transactions

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Substantive testing involves detailed testing of transactions and balances to detect material misstatements in the financial statements.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs