Accounting Multiple Choice Question – 31 January 2019

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

The following information relates to a business’s trading during the month of July.

  • Gross profit for the month – £35,000
  • Expenses for the month – £18,000
  • Net profit for the month – equals 17% of the sales for the month

The business’s Cost of Sales for the month of July is?

Select ONE answer:

  1. £52,000
  2. £53,000
  3. £65,000
  4. £100,000

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
Net profit = Gross profit – Expenses = £35,000 – £18,000 = £17,000
£17,000 = 17% of sales
Therefore, Sales = £17,000 / 17 * 100 = £100,000
Cost of Sales = Sales – Gross Profit = £100,000 – £35,000 = £65,000

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Accounting Multiple Choice Question – 30 January 2019

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

If the total of a business’s sales for the month of May is £400,000 and its gross profit is equal to 20% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

  1. £66,667
  2. £80,000
  3. £320,000
  4. £333,333

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
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 20% of the Cost of Sales
£400,000 – Cost of Sales = 20% of the Cost of Sales
£400,000 = Cost of Sales + 20% of the Cost of Sales
£400,000 = 120% of the Cost of Sales = Cost of Sales * 1.2
Cost of Sales = £400,000 / 1.2 = £333,333

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Accounting Multiple Choice Question – 29 January 2019

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

If the total of a business’s sales for the month of May is £300,000 and its gross profit is equal to 50% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

  1. £100,000
  2. £150,000
  3. £225,000
  4. £200,000

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 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 50% of the Cost of Sales
£300,000 – Cost of Sales = 50% of the Cost of Sales
£300,000 = Cost of Sales + 50% of the Cost of Sales
£300,000 = 140% of the Cost of Sales = Cost of Sales * 1.5
Cost of Sales = £300,000 / 1.5 = £200,000

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Accounting Multiple Choice Question – 28 January 2019

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

If the total of a business’s sales for the month of May is £400,000 and its gross profit is equal to 25% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

  1. £80,000
  2. £100,000
  3. £300,000
  4. £320,000

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 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 25% of the Cost of Sales
£400,000 – Cost of Sales = 25% of the Cost of Sales
£400,000 = Cost of Sales + 25% of the Cost of Sales
£400,000 = 125% of the Cost of Sales = Cost of Sales * 1.25
Cost of Sales = £400,000 / 1.25 = £320,000

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

Accounting Multiple Choice Question – 27 January 2019

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

If the total of a business’s sales for the month of May is £300,000 and its gross profit is equal to 25% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

  1. £60,000
  2. £75,000
  3. £225,000
  4. £240,000

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 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 25% of the Cost of Sales
£300,000 – Cost of Sales = 25% of the Cost of Sales
£300,000 = Cost of Sales + 25% of the Cost of Sales
£300,000 = 125% of the Cost of Sales = Cost of Sales * 1.25
Cost of Sales = £300,000 / 1.25 = £240,000

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Accounting Multiple Choice Question – 26 January 2019

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

Which of the following is prepared in order to determine a firm’s net profit or net loss for an accounting period?

Select ONE answer:

  1. a trading account
  2. a profit and loss account
  3. a trial balance
  4. a balance sheet

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 2
1 – determines the gross profit only
3 – purpose is to show the total of the debit balances brought down in its nominal or general ledger equals that of the credit balances brought down
4 – prepared to show the financial position of the entity

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Accounting Multiple Choice Question – 25 January 2019

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

An error of original entry arises when ……. ?

Select ONE answer:

  1. an incorrect figure is entered on the correct sides of the correct ledger accounts
  2. a transaction is not entered at all in the general (nominal) ledger double-entry accounting records
  3. a correct figure is entered in the double-entry accounting records, once in the correct ledger account and once in the wrong person’s account
  4. two errors are made, one of which cancels out the other

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
2 – is an error of omission
3 – is an error of commission
4 – is a compensating error

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