Business Studies Multiple Choice Question – 31 December 2019

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

Which ONE of the following are fixed costs of a manufacturing business?

 

Select ONE answer:

  1. Raw materials
  2. Packaging for products
  3. Parts and components
  4. Interest on a bank loan

 

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

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

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

The answer is 4

 

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Business Studies Multiple Choice Question – 30 December 2019

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

Which ONE of the following are fixed costs of a manufacturing business?

 

Select ONE answer:

  1. Raw materials
  2. Packaging for products
  3. Parts and components
  4. Rent on premises

 

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

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

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

The answer is 4

 

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Business Studies Multiple Choice Question – 29 December 2019

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

Which ONE of the following are fixed costs of a manufacturing business?

 

Select ONE answer:

  1. Raw materials
  2. Packaging for products
  3. Parts and components
  4. Salaries of managers

 

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

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

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

The answer is 4

 

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Business Studies Multiple Choice Question – 28 December 2019

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

Which ONE of the following might a sole trader pay on their profits?

 

Select ONE answer:

  1. Corporation tax
  2. National Insurance
  3. Income tax
  4. Import duty

 

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

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

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

The answer is 3

 

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Business Studies Multiple Choice Question – 27 December 2019

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 an example of a long-term source of finance?

 

Select ONE answer:

  1. Sales revenue
  2. Bank Loan
  3. Trade credit
  4. Overdraft

 

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

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

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

The answer is 2

 

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Accounting Multiple Choice Question – 26 December 2019

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

A firm records all transactions relating to the expense of both postage and stationery in a single ledger account.

At the beginning of a financial year. there is both a debit balance brought down of £50 and a credit balance brought down of £100 on the account.

Which of the following alternatives could explain this situation?

Select ONE answer:

  1. The firm has a stock of stationery worth £50.
  2. Postage is prepaid to the extent of £100.
  3. The firm has a stock of stationery worth £100.
  4. Postage payable amounts to £50.

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 – In any ledger account, a debit balance brought down represents either an asset or an expense and a credit balance brought down represents either a liability or income. Since the balance on an expense account is either an accrual or a prepayment, the £50 balance has to be a prepayment (asset) and the £100 balance has to be an accrual (liability). This rules out options B (£100 asset), C (£100 asset) and D (£50 liability). When the stationery expense is prepaid, there is a stock of stationery remaining at the end of the year.
  2. Not correct
  3. Not correct
  4. Not correct

 

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Accounting Multiple Choice Question – 25 December 2019

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

A firm records all transactions relating to the expense for both rent and rates in a single ledger account.

At the start of the year there was an accrual in respect of rent of £2,500 and a prepayment in respect of rates of £3,000.

At the end of the year there was rent due of £4,500 and rates prepaid of £3,500. The total expense for both rent and rates for the year was £36,000.

The total amount paid during the year. in respect of both rent and rates, was:

Select ONE answer:

  1. £34,500
  2. £35,500
  3. £36,500
  4. £37,500

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
    Rent & Rates Expense
    Dr Balance b/d (Rates prepaid) £3,000
    Dr Bank £34,500
    Dr Balance c/d (Rent due) £4,500
    Cr Balance b/d (Rent accrued) £2,500
    Cr Profit & Loss (Expense for the year) £36,000
    Cr Balance c/d (Rates prepaid) £3,500
    Totals £42,000
  2. Not correct
  3. Not correct
  4. Not correct

 

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