Accounting Multiple Choice Question – 31 March 2020

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

A firm’s cost of sales for a particular accounting period was £16,000. During the period it earned a gross profit margin of 20% on all goods sold.  The firm‘s sales for the accounting period were?

Select ONE answer:

  1. £13,600
  2. £20,160
  3. £21,000
  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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – Cost of sales = Sales * 100/ 120. £16,000 = Sales * 100/ 120. Therefore, Sales = £16,000 * 120/ 100 = £19,200. Therefore, none of the answers given is correct.

 

 

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Accounting Multiple Choice Question – 30 March 2020

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

A firm’s gross profit margin is 20%. Its mark-up on cost is?

Select ONE answer:

  1. 16 2/3rds %
  2. 22%
  3. 25%
  4. 30%

 

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

  1. Not correct
  2. Not correct
  3. Correct – Gross Profit Margin = Gross Profit as a percentage of selling price = 20%.  Let the selling price = £100.  Therefore, gross profit = £20.  Therefore, cost = £80.  The mark-up on cost = Profit as a percentage of cost price.  £20 / £80 = 25%.
  4. Not correct

 

 

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

Accounting Multiple Choice Question – 29 March 2020

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

The gross profit margin earned by a shopkeeper who sells all goods at 25% above their cost is?

Select ONE answer:

  1. 20%
  2. 30%
  3. 33 1/3 %
  4. 35%

 

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. £25.  Selling price = Cost + gross profit = £125 Gross profit Margin = Gross Profit as a percentage of selling price = £25 / £125 = 20%.
  2. Not correct
  3. Not correct
  4. Not correct

 

 

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

Accounting Multiple Choice Question – 28 March 2020

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

The mark-up on an item which cost £500 and is sold for £625 is?

Select ONE answer:

  1. 20%
  2. 25% 
  3. 33 1/3%
  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 2

  1. Not correct 
  2. Correct – Mark-up (on cost) 2 Gross Profit as a percentage of cost price = (£625 – £500) / £500 = 25%.
  3. Not correct
  4. Not correct

 

 

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

Accounting Multiple Choice Question – 27 March 2020

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

The gross profit margin earned on an item that cost £500 and is sold for £625 is?

Select ONE answer:

  1. 20%
  2. 25% 
  3. 33 1/3%
  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 – Gross Profit Margin = Gross Profit as a percentage of selling price = (£625 — £500) / £625 = 20%.
  2. Not correct
  3. Not correct
  4. Not correct

 

 

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