Accounting Multiple Choice Question – 14 February 2018

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

Wood Pigeon Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

  • Long-Term Assets £400k
  • Inventory £185k
  • Accounts Receivables £140k
  • Bank Account £110k
  • Cash £50K
  • Accounts Payable £165k
  • Long-term Bank Loan £800k
  • Reserves £250k
  • Share Capital £200k
  • Revenue £4,800k
  • Cost-of-Sales £3,400k
  • Net Profit Margin £600k
  • Purchases £1,800k

What is Wood Pigeon’s Capital Gearing percentage ratio?

Select ONE answer:

  1. 64.00
  2. 65.00
  3. 66.00
  4. 67.00
  5. 68.00

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

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

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

The answer is 1 – £800k / (£800k + £250k + £200k) * 100 = 64.00%

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