Accounting Multiple Choice Question – 31 January 2021

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

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What is the net present value of an investment equal to when the internal rate of return is calculated?

Select ONE answer:

  1. the aggregate anticipated future cash income at compound interest
  2. the initial expenditure on the investment
  3. the value of the investment’s depreciation
  4. zero

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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Accounting Multiple Choice Question – 30 January 2021

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

apple devices books business coffee
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The following material costs relate to the manufacture of 100 units of a product.

What is the raw material price variance?

Select ONE answer:

  1. £495 adverse
  2. £495 favourable
  3. £1,320 adverse
  4. £1,320 favourable

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 – £9,570 / 1,650kgs =£5.8 – £5.5 = £0.30 * 1,650 = 495A
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 29 January 2021

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

apple devices books business coffee
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The details of direct labour costs are as follows:

  1. budget – 48,250 hours at £6.50 per hour
  2. actual – 50,000 hours at £7.00 per hour

What is the direct labour rate variance?

Select ONE answer:

  1. £4,700 adverse
  2. £24,000 adverse
  3. £24,000 favourable
  4. £28,700 adverse

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 – 50,000 hours * (£7.00 – £6.50) ==> £25,000 adverse
  4. Not correct

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Accounting Multiple Choice Question – 28 January 2021

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A company has a standard selling price of £12 per unit and budgeted sales of 80,000 units.

It has actual sales of 82,000 units with a total sales value of £955,300.

What is the sales price variance?

Select ONE answer:

  1. £4,700 adverse
  2. £24,000 adverse
  3. £24,000 favourable
  4. £28,700 adverse

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 – £955,300 / 82,000 = £11.65 ==> £12.00 – £11.65 = £0.35 * 82,000 ==> £28,700 ADV

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Accounting Multiple Choice Question – 27 January 2021

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A company’s debtors total £27,000.

There is a collection period of 30 days.

The budget for the coming year provides for an increased turnover of 50 % with the relevant collection period being increased to 60 days.

What will the year-end debtors be?

Select ONE answer:

  1. £81,000
  2. £54,000
  3. £40,500
  4. £36,000

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 – £27k *1.5 * 2
  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.