Month: December 2020

A company is financed by: 

1. 10,000 £1 ordinary shares
2. £5,000 10% loan

Net profit before interest and taxation is £2,500. 

Tax payable is £400. 

What is the maximum dividend per share payable from this year’s profits? 

Select ONE answer:

1. £0.16
2. £0.20
3. £0.21
4. £0.25

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 — (£2,500 – (£5,000 *0.1) – £400) / 10,000 = £0.16
2. Not correct
3. Not correct
4. Not correct

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

The treasurer of a tennis club has provided the following information for a year.

What will the club’s Income and Expenditure account show?

Select ONE answer:

1. A surplus of £1,560
2. A surplus of £1,670
3. A surplus of £1,740
4. A surplus of £1,850

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 – (75 * £95) – (£850 + £110 – £95 + £4,700)
2. Not correct
3. Not correct
4. Not correct

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

A company has an authorised share capital of 2 million £0.25 ordinary shares of which 1.6 million 
are in issue

It is proposed to pay a dividend totalling £40 000.

Which correctly describes the amount of dividend?

Select ONE answer:

1. £360
2. £560
3. £940
4. £1,140

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 – £40,000 / (1,600,000 / 0.25)
3. Not correct
4. Not correct

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

A business was started on 1 January. The purchase and sales of stock for January were:

The business use the First-In First-out (FIFO) method of stock valuation.

What was the gross profit for January?

Select ONE answer:

1. £650
2. £700
3. £750
4. £1,150

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 – £1600 – £600 – £250 = £750
4. Not correct

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

X and Y are in partnership sharing the profits equally.

No Goodwill account is maintained in the accounts. Z joins the partnership and pays $30 000 cash for his share of the Goodwill. Profits are to be shared equally between X, Y and Z.

Which of the following correctly shows the increases in the accounts on the admission of Z into the partnership?

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

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