0452.6.1.03 — Return on capital employed (ROCE): past paper questions
Real questions on 0452.6.1.03 — return on capital employed (roce)
The newest 19 of 19 written questions. Open one to see it on the real paper.
- 0452/22 · May/June 2026 · Q4c(ii)[1]
capital employed
See it on the paper → - 0452/22 · May/June 2026 · Q4c(iii)[3]
return on capital employed (based on closing capital), to two decimal places. The directors are considering issuing ordinary shares and using the funds to purchase new shop fixtures. The shop fixtures would include a large new sign showing the name of the company for the front of the shop. REQUIRED
See it on the paper → - 0452/22 · October/November 2025 · Q3e[5]
Advise Ahmed whether he should buy this new recovery vehicle. Justify your answer by providing advantages and disadvantages of buying the new recovery vehicle.
See it on the paper → - 0452/22 · October/November 2025 · Q4d[5]
Advise the directors of AY Limited whether or not delaying payments to their trade payables would be a good way to secure the purchase of the equipment. Justify your answer by providing points for and against delaying payments to their trade payables.
See it on the paper → - 0452/21 · May/June 2025 · Q4d[3]
The directors of H Limited would like to expand the business. They are considering issuing debentures for $60 000 to fund an expansion. These debentures would carry interest of 3%. REQUIRED (d) Calculate the return on capital employed for the year ended 30 April 2025. State your answer to two decimal places.
See it on the paper → - 0452/21 · May/June 2025 · Q4e[5]
Advise the directors whether or not they should issue the debentures to fund an expansion. Justify your answer by providing two points for and two points against issuing the debentures to fund an expansion. Question 5 starts on page 16.
See it on the paper → - 0452/23 · May/June 2025 · Q4d[3]
The directors of H Limited would like to expand the business. They are considering issuing debentures for $60 000 to fund an expansion. These debentures would carry interest of 3%. REQUIRED (d) Calculate the return on capital employed for the year ended 30 April 2025. State your answer to two decimal places.
See it on the paper → - 0452/21 · October/November 2022 · Q4b[4]
Calculate to two decimal places the return on capital employed for the year ended 31 August 2022. (Use closing capital employed).
See it on the paper → - 0452/23 · October/November 2022 · Q4c(i)[2]
Calculate to two decimal places the profit margin for the year.
See it on the paper → - 0452/22 · May/June 2022 · Q2e[5]
Advise Stalla whether or not she should start selling on credit terms. Justify your answer.
See it on the paper → - 0452/22 · May/June 2021 · Q3(c)[3]
Calculate the return on capital employed for the year ended 31 March 2021. The answer should be correct to two decimal places.
See it on the paper → - 0452/23 · October/November 2020 · Q5b(iii)[2]
Return on capital employed (ROCE) Nazim discovered that his rate of inventory turnover (times) was also lower than that of Aziz. REQUIRED
See it on the paper → - 0452/21 · May/June 2020 · Q5(d)[4]
Calculate the return on capital employed (ROCE) for the year ended 30 April 2020. The calculation should be correct to two decimal places and should be based on closing capital employed.
See it on the paper → - 0452/21 · May/June 2020 · Q5(e)[5]
Advise the directors how the return on capital employed (ROCE) can be increased. Justify your answer by commenting on both profit and capital employed.
See it on the paper → - 0452/21 · October/November 2019 · Q2d[1]
State what is measured by the return on capital employed (ROCE).
See it on the paper → - 0452/21 · October/November 2019 · Q2e[2]
Explain the effect on the return on capital employed (ROCE) of extending the loan repayment date.
See it on the paper → - 0452/23 · October/November 2019 · Q2d[1]
State what is measured by the return on capital employed (ROCE).
See it on the paper → - 0452/23 · October/November 2019 · Q2e[2]
Explain the effect on the return on capital employed (ROCE) of extending the loan repayment date.
See it on the paper → - 0452/23 · May/June 2019 · Q5c(iii)[2]
Return on capital employed (ROCE) Myra’s brother, Raj, also has a business. After he prepared his draft financial statements for the year ended 31 March 2019 the following errors were discovered. 1 The total cost of an advertising campaign, $900, which covered a period of 15 months to 30 June 2019, had been charged to...
See it on the paper →
What examiners said
Using their answer to part (b), and the profit for the year which was provided, candidates were required to calculate the return on capital employed. Many candidates knew the formula, but did not select the correct figures. The numerator should have been the profit for the year plus the debenture interest and the denominator should have been the equity plus the non-current liabilities (or the tota...
— Examiner report, May/June 2025, 0452/21 Q4(d) (Cambridge)
Advice had to be given on whether a limited company should issue debentures. Many candidates correctly identified one or two disadvantages, but found it difficult to identify an advantage. Many incorrectly discussed the advantages and disadvantages of expanding the company. Some candidates did not seem to be familiar with debentures and made incorrect statements about interest being received. A nu...
— Examiner report, May/June 2025, 0452/21 Q4(e) (Cambridge)
Using their answer to part (b), and the profit for the year which was provided, candidates were required to calculate the return on capital employed. Many candidates knew the formula, but did not select the correct figures. The numerator should have been the profit for the year plus the debenture interest and the denominator should have been the equity plus the non-current liabilities (or the tota...
— Examiner report, May/June 2025, 0452/23 Q4(d) (Cambridge)
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