Month: September 2020

Which one of the costs below is normally classified as an indirect cost?

Select ONE answer:

1. carriage inwards
2. factory rent
3. production materials
4. production wages

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
3. Not correct
4. Not correct

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

A club provided the following information at the end of its financial year:

1. rent of premises paid in advance
2. outstanding subscriptions from members

Where will these items appear in the club’s statement of financial position?

Select ONE answer:

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. Not correct
3. Not correct
4. Not correct

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

A club provided the following information for the year 2019.

• Receipts = £21,600
• Payments = £20,000
• Depreciation charge for the year = £1,250
• Accumulated fund at the year end 2019 = £15,800

There were no accruals and prepayments and there had been no capital expenditure or capital receipts.

What was the accumulated fund at the start of the year (end of 2018)?

Select ONE answer:

1. £60,000
2. £70,000
3. £90,000
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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – £150k – £90k = £60k therefore £160k – £60k = £100k

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

The issued share capital of Alex Limited consists of ordinary shares.

The retained earnings were £90,000 on 1 August 2019. These had increased to £150,000 on 31 July 2020.

The company earned a profit for the year of £160,000.

What was the total ordinary share dividend for the year?

Select ONE answer:

1. £60,000
2. £70,000
3. £90,000
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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – £150k – £90k = £60k therefore £160k – £60k = £100k

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

Lucy Limited provided the following information.

Issued and paid up share capital – £400,000
General Reserves – £60,000
Retained Earnings – £30,000
20% Debentures – £40,000

What was the value of equity?

Select ONE answer:

1. £430,000
2. £460,000
3. £490,000
4. £530,000

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

1. Not correct
2. Not correct
3. Correct – £400k + £60k + £30k
4. Not correct

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