Accounting Multiple Choice Question – 14 February 2018

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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