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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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.

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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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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

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

Accounting Multiple Choice Question – 7 August 2022

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

Which item would not appear under “Returns on investments and servicing of finance” in a cash flow statement?

Select ONE answer:

  1. ordinary share dividends paid
  2. ordinary share dividends received
  3. preference share dividends paid
  4. preference share dividends received

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
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 6 August 2022

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

A company uses a predetermined direct labour rate of £5.40 per hour to absorb production overhead.

Each unit of product manufactured requires four direct labour hours.

The following information is available for a period:

  • actual production overhead £518 400
  • under-absorbed production overhead £32 400

What was the actual output of the product in the period?

Select ONE answer:

  • 22 500 units
  • 24 000 units
  • 25 500 units
  • 30 000 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 1

  1. Correct – £518,400 – £32,400 = £486,000 / £5.4 = 90,000 / 4 DLH ==> 22,500 units
  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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