Accounting Multiple Choice Question – 5 March 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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At the beginning of the year a business has a provision for doubtful debts of £2,600.

At the year end the provision is to be 5% of trade debtors. 

The balance on the Debtors Control account at the year end is £69,200, before writing off a bad debt of £480. 

The business operates a separate Bad Debts account.

What is the entry in the Profit and Loss Account for the provision for doubtful debts? 

Select ONE answer:

  1. £836 debit
  2. £860 debit
  3. £836 credit
  4. £860 credit

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – (£69,200 – £480) * 0.05 = £3,436 – £2,600 ==> £836 debit
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 4 March 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The table below gives data about rental income for the year ended 31 March 2020. 

Which figure for rental income will appear in the Profit and Loss Account for the year ended 31 March 2020? 

Select ONE answer:

  1. £14,010
  2. £14,210
  3. £14,310
  4. £14,510

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct = £13,700 + £560 – £1,400 + £1,300 + £1,750 – £1,600
  4. Not correct

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Accounting Multiple Choice Question – 3 March 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A company manufactures a single product as shown. 

  • selling price £20 per unit
  • variable costs £15 per unit 

Its budgeted fixed costs are £200,000.

How many units must the company sell to make a net profit of £50,000? 

Select ONE answer:

  1. 10 000 units
  2. 30 000 units
  3. 40 000 units
  4. 50 000 units 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – CM = £20 – £15 = £5 ==> £200,000 / £5 = 40,000 units ==> £50,000 Profit / CM £5 = 10,000 units TOTAL 50,000 units

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Accounting Multiple Choice Question – 2 March 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A company considers buying a new machine costing £60,000. The machine will have a life of four years. It will then have a scrap value of £10,000.

The company has a straight line depreciation policy. The table shows the forecast net receipts arising from the purchase of the machine. 

How long will it take the company to ‘pay back’ its investment? 

Select ONE answer:

  1. 1 year, 197 days
  2. 1 year, 309 days
  3. 2 years, 182 days
  4. 3 years

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – £60k – Y1 £20k – Y2 £20k – Y3 £20k

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Accounting Multiple Choice Question – 1 March 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The net present value (NPV) method of investment appraisal requires?

Select ONE answer:

  1. a distinction being made between capital and revenue expenditure and income.
  2. the realistic depreciation of the capital expenditure involved.
  3. a knowledge of the amounts and timings of the expected net proceeds of proposed investments.
  4. the calculation of the payback periods of proposed investments.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.