Month: June 2021

What is the definition of prime cost?

Select ONE answer:

1. direct materials + direct labour
2. direct materials + direct labour + direct expenses
3. direct materials + direct labour + factory overheads
4. direct materials + direct labour + direct expenses + factory overheads

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

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

The directors of a company are completing the accounts for the year ended 30 April 2020.

They discover that the stock at 1 May 2019 was over-valued by £50,000.

What is the effect of correcting this error in the accounts?

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.

Which item will be included in a Balance Sheet as a creditor?

Select ONE answer:

1. loan stock issued by a company
2. preference shares issued by a company
3. revaluation reserve
4. share Premium account

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.

A club charges each of its 100 members an annual subscription of £12.

At the end of a year four members had not paid their annual subscription. 

What will be the entries in the financial statements for subscriptions?

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 ==> 100 * £12 = £1,200 / 4 * £12 = £48 Asset
4. Not correct

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

An item of revenue expenditure has been incorrectly treated as capital expenditure in the accounts of a business.

What effect will the correction of this error have on the accounts? 

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 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.