Month: November 2020

The table shows an extract from a company’s accounts for the year ended 31 December 2001. 

credit sales — £200,000
cost of sales — £160,000
debtors — £32,876
creditors — £24,658

What is the trade receivable or debtor collection period?

Select ONE answer:

1. 30 days
2. 45 days
3. 60 days
4. 75 days

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 – (32,876 / 200,000) * 365
4. Not correct

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Using your own knowledge of the general business environment, which business is likely to have the lowest Gross Profit / Sales margin?

Select ONE answer:

1. a car manufacturer
2. a computer software company
3. a jewellery shop
4. a supermarket

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

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At the beginning of the year a company has authorised share capital of 400,000 £1 ordinary shares and issued share capital of 200,000 £1 ordinary shares.

During the year the company makes a further issue of 100,000 £1 ordinary shares at a price of £2.40 each.

What is the balance on the Share Capital account at the end of the year?

Select ONE answer:

1. £300,000
2. £440,000
3. £500,000
4. £640,000

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 1

1. Correct – 200k * £1 + 100k * £1 (the difference is share premium)
2. Not correct
3. Not correct
4. Not correct

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A company increases its provision for doubtful debts.

How does this affect the cash flow statement? 

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 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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During the year ended 31 December 2019, the XY Sports Club received £10,860 in cash for subscriptions.

The following further information is available.

• 

What is the figure for subscriptions in the Income and Expenditure Account for the year ended 31 December 2019?

Select ONE answer:

1. £10,150
2. £10,510
3. £11,570
4. £12,270

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 = £10,860 – £580 + £1,640 +£870 – £1,220
4. Not correct

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