Accounting Multiple Choice Question – 7 December 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 shows information from a company’s accounts.

  • Turnover – £135k
  • Gross profit – £34k
  • Profit before interest and tax – £11k
  • Profit after tax – £8k
  • Fixed assets – £59k
  • Current assets – £50k
  • Debentures – £12k
  • Current liabilities – £40k

What is the return on total capital employed?

Select ONE answer:

  1. 8.1%
  2. 11.3%
  3. 14.0%
  4. 15.9%

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 ==> A=L+C ==> £59k + £50k – £12k – £40k = £57k + £12k ==> Capital Employed ==> PBIT / CE ==> £11k / £69k = 15.9%

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Accounting Multiple Choice Question – 6 December 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 makes a 1 for 4 bonus issue of ordinary shares.

What will happen to share capital and shareholders funds?

Select ONE answer:

  1. Share capital increased by 25% & shareholders funds decreased by 25%
  2. Share capital increased by 25% & shareholders funds increased by 25%
  3. Share capital increased by 25% & shareholders funds increased by 0%
  4. Share capital increased by 0% & shareholders funds increased by 25%

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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Accounting Multiple Choice Question – 5 December 2021

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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Which statements are true about debentures and ordinary shares?

Select ONE answer:

  1. debentures can be issued at a premium & ordinary shares are never issued at a premium
  2. debenture holders are owners of a company & ordinary share holders are creditors of a company
  3. debenture interest is a charge against profit & ordinary share dividends are an appropriation of profit
  4. debenture interest varies from year to year & ordinary share dividends are paid at the same rate each year

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 – 4 December 2021

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 does not keep proper accounting records.

The following information is available at the start of the year.

  1. a motor car valued at £2,500
  2. stocks which cost £4,000 with a sale value of £6,000
  3. bank overdraft of £500
  4. a loan to a friend from the business bank account £1,000

What is the Capital account balance at the start of the year?

Select ONE answer:

  1. £5,000
  2. £7,000
  3. £8.000
  4. £9,000

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 2

  1. Not correct
  2. Correct ==> £2,500 + £4,000 – £500 + £1,0000
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 3 December 2021

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 company has two items in stock which require to be repaired before sale.

  cost £   selling price £   repair costs £

item 1   5 260   7 600   880

item 2   2 360   2 450   190

What is the total stock value of these items?

Select ONE answer:

  1. £6,550
  2. £7,520
  3. £7,620
  4. £8,980

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 ==> £5,260 +(£2,450 – £190 Lower of cost or NRV)
  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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