Month: July 2018

Business Studies Multiple Choice Question – 26 July 2018

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

Which ONE of the following is a factor that could increase the level of risk in a business?

Select ONE answer only:

  1. Seasonal demand
  2. Having a large target market
  3. Having a low fixed costs
  4. Employing a large number of employees
  5. Having a unique product to sell

Explain ONE reason why running a business can involve high levels of risk.

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This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 1 – Seasonal demand will be a high-risk factor for a business trying to match its revenues and costs and survive for the rest of the year.  Low fixed costs are an advantage to any business, as its break-even level before it can make profits should normally be low.

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Business Studies Multiple Choice Question – 25 July 2018

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

Which ONE of the following is a reason for a product to become obsolete?

Select ONE answer only:

  1. The product breaks
  2. An accessory for the product is introduced
  3. The product is unique
  4. New technology is introduced
  5. The general level of prices rise in the market

Explain ONE way that changing consumer needs could create a new opportunity for a business.

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

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 4 – New technology is introduced that will make this product obsolete.

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Accounting Multiple Choice Question – 24 July 2018

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

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

  • Long-Term Assets £1.8M
  • Inventory £2.7M
  • Accounts Receivables £1.5M
  • Bank Account £0.4M
  • Cash £0.1M
  • Accounts Payable £2.9M
  • Long-term Bank Loan £4M
  • Reserves  £1.5M
  • Share Capital £1.0M
  • Revenue  £25.8M
  • Cost-of-Sales  £20.0M
  • Net Profit Margin  £2.5M
  • Purchases  £11.5M

What is Wood Elf’s Capital Gearing percentage ratio?

Select ONE answer:

  1. 10.00
  2. 26.32
  3. 92.04
  4. 36.5
  5. 61.54

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

The answer is 5 – £4M / (£4M + £1.5M + £1.0M) * 100 = 61.54%

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Accounting Multiple Choice Question – 23 July 2018

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

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

  • Long-Term Assets £1.8M
  • Inventory £2.7M
  • Accounts Receivables £1.5M
  • Bank Account £0.4M
  • Cash £0.1M
  • Accounts Payable £2.9M
  • Long-term Bank Loan £4M
  • Reserves  £1.5M
  • Share Capital £1.0M
  • Revenue  £25.8M
  • Cost-of-Sales  £20.0M
  • Net Profit Margin  £2.5M
  • Purchases  £11.5M

What is Wood Elf’s Trade Payable Days ratio?

Select ONE answer:

  1. 10.00
  2. 26.32
  3. 92.04
  4. 36.5
  5. 61.54

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

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

The answer is 3 – £2.9M / £11.5M * 365 days = 92.04 days

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

Accounting Multiple Choice Question – 22 July 2018

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

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

  • Long-Term Assets £1.8M
  • Inventory £2.7M
  • Accounts Receivables £1.5M
  • Bank Account £0.4M
  • Cash £0.1M
  • Accounts Payable £2.9M
  • Long-term Bank Loan £4M
  • Reserves  £1.5M
  • Share Capital £1.0M
  • Revenue  £25.8M
  • Cost-of-Sales  £20.0M
  • Net Profit Margin  £2.5M
  • Purchases  £11.5M

What is Wood Elf’s Trade Receivable Days ratio?

Select ONE answer:

  1. 7.41
  2. 21.22
  3. 1.62
  4. 49.28
  5. 0.67

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

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

The answer is 2 – £1.5M/ £25.8M * 365 days = 21.22 days

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