Accounting Multiple Choice Question – 31 August 2021

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

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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

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Accounting Multiple Choice Question – 30 August 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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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

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

Accounting Multiple Choice Question – 29 August 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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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

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

Accounting Multiple Choice Question – 28 August 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 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

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

Accounting Multiple Choice Question – 27 August 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 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

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