Month: August 2021

Which item is NOT required by the Companies Act 1985 to be disclosed in a company’s published accounts?

Select ONE answer:

1. auditors’ remuneration
2. depreciation
3. directors’ remuneration
4. legal expenses

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.

A company’s Balance Sheet at 31 December 2019 included the following 

Long term liabilities  —  Loan (repayable on 30 April 2021)  —  £50,000

Long term liabilities  —  10% debentures (2019 – 2025)  —  £100,000

The company intends to redeem half the debentures on 31 December 2021 and the remainder on 1 July 2022. 

How should these liabilities be shown in the Balance Sheet at 31 December 2020?

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.

What is required to be shown in a company’s published Profit and Loss Account?

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 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 Balance Sheet of a sole trader shows net assets of £500,000.

A limited company buys this business for £800,000 by issuing new share capital.

The fair value of the net assets acquired is £700,000.

How much do the net assets of the purchasing company increase?

Select ONE answer:

1. £300,000
2. £500,000
3. £700,000
4. £800,000

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 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.

A Balance Sheet extract shows: 

All the loan stock is to be converted to ordinary shares in the proportion of £1 loan stock to 1 new ordinary share. 

After the conversion, what will be the net asset value per share?

Select ONE answer:

1. £0.80
2. £0.90
3. £1.00
4. £1.30

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 ==> (£1,000 + £400) / £1,400 / £1,800 – £540 + (140 * 2)
3. Not correct
4. Not correct

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