Month: March 2021

Which adjustment will result in an increase in a company’s stated profit?

Select ONE answer:

1. amortisation of Goodwill
2. application of reserves for the issue of bonus shares
3. capitalisation of development costs
4. upward revaluation of fixed assets

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.

A company has an authorised capital of £1,000,000.

Which statement must be true?

Select ONE answer:

1. The company must issue £1,000,000 in shares
2. The company must not issue more than 1,000,000  shares
3. The shares issued must not exceed £1,000,000 
4. The shares and debentures must not exceed £1,000,000

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
4. Not correct

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

An extract from a company’s Balance Sheet is given below. 

What are the ordinary shareholders’ funds?

Select ONE answer:

1. £50,000
2. £54,000
3. £64,000
4. £80,000

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 – £50k + £10k + £4k
4. Not correct

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

Information about a business is given.

What is the prime cost?

Select ONE answer:

1. £69,000
2. £71,000
3. £92,000
4. £94,000

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 – (£3K + £35K – £2K) + £33K
2. Not correct
3. Not correct
4. Not correct

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

Which of the following will increase profit?

Select ONE answer:

1. increasing depreciation rates
2. increasing distributable reserves
3. increasing the provision for doubtful debts
4. increasing the value of closing stock and work-in-progress

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

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