Month: February 2022

If the GP margin is 25% and sales were £300,000, calculate the value of gross profit?

Select ONE answer:

1. £50,000
2. £60,000
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 3

1. Not correct
2. Not correct
3. Correct ==> £300 * 0.25 = £75k
4. Not correct

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

What are fixed costs if a business makes a profit for the year of £400,000 after turnover of £850,000 and total variable costs of £225,000?

Select ONE answer:

1. £225,000
2. £625,000
3. £425,000
4. £450,000

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 1

1. Correct ==> T/O – VC – Profit = £225K
2. Not correct
3. Not correct
4. Not correct

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

If cash outflows are £5,000 and net cash flow is £2,000, calculate the value of cash inflows?

Select ONE answer:

1. £7,000
2. £3,000
3. (£3,000)
4. (£7,000)

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 1

1. Correct ==> £Xk – £5k = +£2k thus £Xk is £7k
2. Not correct
3. Not correct
4. Not correct

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

A specialist wedding cake baker’s fixed costs are £7,000 per month.

It sells cakes at a priceof £57 per cake & the variable cost per cake is £22.

What is the break-even level of output and sales each month?

Select ONE answer:

1. 150 cakes
2. 200 cakes
3. 250 cakes
4. 500 cakes

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 ==> £7,000 / (£57 – £22)
3. Not correct
4. Not correct

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

What does a statement of financial position show?

Select ONE answer:

1. Total Costs = Total Contribution
2. Total Revenue = Total Price
3. Total Profit = Total Costs
4. Total Revenue = Total Costs

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.