Accounting Multiple Choice Question – 24 March 2023

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

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What is required to be disclosed in the directors’ report?

Select ONE answer:

  1. accounting policies
  2. directors’ remuneration
  3. earnings per share
  4. the main activity of the company

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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Accounting Multiple Choice Question – 23 March 2023

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

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Alex agrees to sell his business.

The value of the business being sold is shown.

  • goodwill £32k
  • fixed assets £100k
  • current assets £60k
  • current liabilities £12k

The purchase consideration is shares with a nominal value of £1, to be issued at a premium of £0.20.

How many shares will Alex receive?

Select ONE answer:

  1. 150,000
  2. 160,000
  3. 170,000
  4. 180,000

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 3

  1. Not correct
  2. Not correct
  3. Correct – £32k + £100k + £60k + £12k = £204k / £1.2 per share = 170,000 shares
  4. Not correct

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

Accounting Multiple Choice Question – 22 March 2023

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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Alex plc’s SOFP showed the following:

  • net assets – £10M
  • £1 ordinary shares – £5M
  • Retained earnings – £5M

The company intends to purchase one million of its own shares at a price of £1.50 per share.

What is the value of the resulting balance on retained earnings AFTER the purchase?

Select ONE answer:

  1. £3.5 million
  2. £4.0 million
  3. £4.5 million
  4. £5.0 million

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 – 1M * £1.5 each = £1.5M == > Dr Shares £1M Dr Retained Earnings £0.5M Cr Cash £1.5M
  4. Not correct

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

Accounting Multiple Choice Question – 21 March 2023

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

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During the year ended 31 March 2022, Alex plc sold plant and machinery for £8,000.

This plant had cost £60,000 and had a book value of £10,000.

An additional £140,000 was spent on new plant and machinery, which was depreciated at the end of the year by 20%.

In preparing the cash flow statement at the end of the year, how are the above transactions shown under the capital expenditure heading?

Select ONE answer:

  1. Cash Inflow £NIL and Cash Outflow £132,000
  2. Cash Inflow £8,000 and Cash Outflow £112,000
  3. Cash Inflow £8,000 and Cash Outflow £140,000
  4. Cash Inflow £10,000 and Cash Outflow £140,000

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 – £140k – £8k
  2. Not correct
  3. Not 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 – 20 March 2023

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

Which decreases the net cash inflow from operating activities?

Select ONE answer:

  1. decrease in stock
  2. increase in creditors
  3. increase in debtors
  4. repayment of borrowings

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

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

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