Accounting Multiple Choice Question – 28 February 2022

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 business had a non-current asset with a net book value of £18,000 at 31 December 2021.

It had been purchased during the year ended 31 December 2020.

Depreciation is charged at a rate of 25% per annum using the reducing balance method.

A full year’s depreciation is charged in the year of purchase.

What was the original cost of the non-current asset?

Select ONE answer:

  1. £22,500
  2. £24,000
  3. £27,000
  4. £32,000

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 ==> £18k / 0.75 / 0.75 = £32k

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Accounting Multiple Choice Question – 27 February 2022

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

Which costs are NOT a part of capital expenditure when purchasing a new machine?

1 delivery costs
2 installation costs
3 machine operator training costs

Select ONE answer:

  1. 1 and 2
  2. 2 and 3
  3. 2 only
  4. 3 only

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

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

Accounting Multiple Choice Question – 26 February 2022

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

The employees of a successful Staffordshire company are skilled and efficient.

Although they are regarded as a human asset of the company, no value for them has been recorded in the financial statements of the business.

Which accounting concept has been applied?

Select ONE answer:

  1. Duality
  2. Money measurement
  3. Realisation
  4. Business Entity

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

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

Accounting Multiple Choice Question – 25 February 2022

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

If average inventories held were valued at £15,000 and cost of good sold was £200,000, calculate the inventory turnover?

Select ONE answer:

  1. 54.75 days
  2. 82.13 days
  3. 27.38 days
  4. 13.69 days

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 ==> (AI / COS) * 365 Days ==> 27.38 days
  4. Not correct

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

Accounting Multiple Choice Question – 24 February 2022

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

By how much would profit change if revenues rose by £150,000, variable costs increased by £75,000 and fixed costs fell by £25,000?

Select ONE answer:

  1. £25,000
  2. £50,000
  3. £75,000
  4. £100,000

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 ==> £150k – £75K + £25k = £100k

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

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