Month: April 2021

In a cash flow statement, which item is a cash outflow? 

Select ONE answer:

1. a decrease in trade debtors
2. an increase in stock
3. an increase in trade creditors
4. an issue of preference shares

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

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Which method of investment appraisal is based on profits?

Select ONE answer:

1. accounting rate of return
2. internal rate of return
3. net present value
4. payback

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.

Budgeted and actual labour costs for making a product are given.

What is the labour efficiency  variance?

Select ONE answer:

1. £1,620 adverse
2. £1,620 favourable
3. £1,650 adverse
4. £1,650 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 3

1. Correct ==> £19,530 / 1,240 = £15.75 ==> £0.25 * 1,240 = £310 ADV
2. Not correct
3. Not correct
4. Not correct

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

Budgeted and actual sales of a product are given

What is the sales price variance?

Select ONE answer:

1. £310 adverse
2. £310 favourable
3. £330 adverse
4. £330 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 ==> £19,530 / 1,240 = £15.75 ==> £0.25 * 1,240 = £310 ADV
2. Not correct
3. Not correct
4. Not correct

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

The following information relates to labour costs. 

• standard pay rate per hour  —  £7.50
• actual pay rate per hour  —  £9.00
• actual hours worked  —  60,000 hours
• labour efficiency variance  —  £12,000 adverse

What is the standard number of labour hours for actual output?

Select ONE answer:

1. 48,667
2. 51,333
3. 58,400
4. 61,600

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 ==> (60,000 – X) * £7.50 = £12,000 Adverse where X = 58,400
4. Not correct

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