Accounting Multiple Choice Question – 12 August 2022

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

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When may a company issue redeemable preference shares?

Select ONE answer:

  1. when it has already issued non-redeemable debentures
  2. when it has already issued non-redeemable shares
  3. when it has already redeemed its debentures
  4. when it has sufficient reserves to fund the issue

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 2

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

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Accounting Multiple Choice Question – 11 August 2022

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

apple devices books business coffee
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A business redeems debentures by cash payment.

What is the effect of this payment on equity, long-term liabilities and working capital?

Select ONE answer:

  1. equity decrease & long term liabilities decrease & working capital decrease
  2. equity decrease & long term liabilities decrease & working capital no change
  3. equity no change & long term liabilities decrease & working capital decrease
  4. equity no change & long term liabilities increase & working capital decrease

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.

Accounting Multiple Choice Question – 10 August 2022

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

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Which statement is correct?

Select ONE answer:

  1. A capital redemption reserve may be used to finance the redemption of redeemable preference shares.
  2. All of the issued share capital may be redeemed.
  3. Partly paid redeemable preference shares may be redeemed.
  4. The company’s Articles of Association must authorise the issue of redeemable shares.

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

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

Accounting Multiple Choice Question – 9 August 2022

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

apple devices books business coffee
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The following items appear in a company’s Profit and Loss Account.

  • profit, after charging or crediting the following items – £16 800
  • annual depreciation charge – £6 000
  • loss on sale of tangible assets – £1 800
  • interest paid – £7 500
  • profit on sale of tangible assets – £1 100

What is the cash flow from operating activities?

Select ONE answer:

  1. £15 700
  2. £29 600
  3. £31 000
  4. £33 200

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 – £16,800 + £6 ,000 + £7,500 + £1,800 – £1,100
  4. Not correct

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

Accounting Multiple Choice Question – 8 August 2022

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

Extracts from the Balance Sheets of a company show:

                      at 30 September 2004 £    at 30 September 2005 £

  • financed by:
  • issued share capital 10 000 15 000
  • share premium account – 2 500
  • revaluation reserve 500 800
  • Profit and Loss Account 3 500 4 200
  • debentures 2 000 1 500
  • Net Assets 16 000 24 000

What is the net cash movement from “Financing” for the year ended 30 September 2005?

Select ONE answer:

  1. £7 000
  2. £7 300
  3. £7 500
  4. £8 000

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 ==> (15,000 – 10,000) + (2,500 – 0) + (1,500 – 2,000)
  2. Not correct
  3. Not correct
  4. Not correct

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

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