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

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

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

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

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

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

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

Creative Commons License
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

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