Accounting Multiple Choice Question – 30 April 2019

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

A sole trader incurred a loss of £10,000 during his most recent accounting period, yet had more money in his bank account at the end of the period than he had at the beginning of it.

Which of the following, on its own, could explain this?

Select ONE answer:

  1. An increase in the amount of his stock over the course of the period.
  2. The introduction of £15,000 new capital during the period.
  3. His customers taking longer than normal to pay the amounts they owe to him.
  4. The purchase of fixed assets during the period.

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. Any increase in stock over the course of the period would have to have been paid for either in cash or by cheque or else purchased on credit. In all of these cases, the cash balance would either not have changed or would have decreased.
  2. Correct
  3. Assuming that bills are being paid by the sole trader at the normal rate, customers taking longer to pay their bills will, over time, reduce the cash and/or bank balance(s) as money will be paid out at the normal rate but will be coming in at a slower rate.
  4. The purchase of fixed assets would have to have been paid for either in cash or by cheque or else purchased on credit. In all of these cases, the cash balance would either not have changed or would have decreased.

 

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

Accounting Multiple Choice Question – 29 April 2019

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

The following data relates to a firm which has been trading for several years.

Table 57

Assuming that the firm’s cost of sales is calculated by reference to its purchases and stock figures only, the total of its purchases during 2018 was?

Select ONE answer:

  1. £100,000
  2. £170,000
  3. £450,000
  4. £550,000

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

4. Stock at 1 January 2018 = Stock at 31 December 2017. 2018 Cost of Sales (£500,000) = Stock at 1 January 2018 (£150,000) + Purchases during 2018 (missing figure) – Stock at 31 December 2018 (£200,000). Therefore, purchases during 2018, the figure required to solve the equation = £550,000.

 

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

Accounting Multiple Choice Question – 28 April 2019

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

The cost incurred by a firm of bringing goods to a merchantable condition should be included in…?

Select ONE answer:

  1. its trading account.
  2. its profit and loss account.
  3. its balance sheet.
  4. None of the above.

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

  1. Correct – The cost of bringing goods to a merchantable condition is a cost of sale, which is matched (offset) against the sales figure in the trading account.

 

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

Accounting Multiple Choice Question – 27 April 2019

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

The following information concerns a retailing firm.

  • Sales during July – £8,200
  • Purchases during July – £6,400
  • Stock at 1 July – £1,300
  • Stock at 31 July – £900
  • Carriage inwards on July purchases – £200

The firm’s cost of sales for July is…?

Select ONE answer:

  1. £6,200
  2. £6,800
  3. £7,000
  4. None of the above.

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

  • Stock at 1 July                                            £1,300
  • Purchases during July                             + £6,400
  • Carriage inwards on July purchases    + £200
  • Stock at 31 July                                          – £900
  • Cost of sales for July                                 = £7,000

 

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

Accounting Multiple Choice Question – 26 April 2019

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

Carriage inwards is included in the cost of sales calculation because …?

Select ONE answer:

  1. it is a cost associated with the purchase of goods.
  2. it should not be shown in the balance sheet.
  3. carriage outwards is shown as an expense in the profit and loss account.
  4. None of the above.

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

  1. Correct
  2. Although it is correct that carriage inwards should not be shown in the balance sheet, this is not a reason why it should be included in the cost of sales calculation.
  3. Although it is correct to include carriage outwards as an expense in the profit and loss account, this is not a reason why carriage inwards should be included in the cost of sales calculation.

 

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

Economics Multiple Choice Question – 25 April 2019

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

The increase in online banking has led to a reduction in the demand for counter staff in high street bank branches.

Which of the following types of unemployment is this most likely to have caused?

Select ONE answer:

  1. Cyclical
  2. Frictional
  3. Seasonal
  4. Structural

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

  1. This would have been caused by a decline in aggregate demand.
  2. This arises when workers are in between jobs.
  3. This occurs when workers are unemployed at certain times of the year.
  4. Correct: This is caused by a change in the technology used in the industry – a change in supply conditions.

 

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

Economics Multiple Choice Question – 24 April 2019

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

The table shows the amount of direct tax paid by individuals at different levels of income in a country in the eurozone.

Table 56

Which of the following statements about the country’s direct tax system is true?

Select ONE answer:

  1. The system is progressive throughout the income range
  2. The system is proportional from €10 000 to €20 000 only
  3. The system is proportional throughout the income range
  4. The system is regressive from between €20 000 and €30 000

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 2

  1. Tax does indeed rise as income rises but this does not define a progressive system.
  2. Correct: The proportion of income taxed remains at ten percent.
  3. It is indeed proportional in the 10–20,000 range but not thereafter.
  4. Regressive means a lower proportion of tax as income rises. Here it is higher.

 

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