Month: July 2022

Accounting Multiple Choice Question – 11 July 2022

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

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A loan due for repayment in 30 months’ time has been included as a current liability.

What will be the effect when this is corrected?

Select ONE answer:

  1. increase net assets
  2. increase net current assets
  3. no effect on net current assets
  4. reduce net current assets

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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Accounting Multiple Choice Question – 10 July 2022

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 should be treated as capital expenditure?

Select ONE answer:

  1. cost of carriage on the purchase of a fixed asset
  2. cost of replacement of part of a fixed asset
  3. depreciation of a fixed asset
  4. repairs to a fixed asset

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

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Accounting Multiple Choice Question – 9 July 2022

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

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The accounting year end for a company is 31 October.

The company’s telephone bill received on 5 December for the three months ended 30 November was:

  • telephone calls to 30 November – £1,041
  • rental of equipment for the period from 1 September to 30 November – £156
  • total telephone bill – £1,197

What accrual should the company make in the accounts for the year ended 31 October?

Select ONE answer:

  1. £503
  2. £798
  3. £1,093
  4. £1,197

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 ==> £1,197 / 3 then multiplied by 2 for September & October
  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 – 8 July 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 company has issued shares at a premium.

For what purpose from the options below can the balance on the share premium account be used by a business?

Select ONE answer:

  1. to provide for the premium on the redemption of shares which were issued at par
  2. to provide for the discount on a new issue of shares
  3. to write off the preliminary expenses incurred in forming the company
  4. to write off a loss on the revaluation of fixed assets

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.

Business Studies Multiple Choice Question – 7 July 2022

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

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Electromac operates Just in time (JIT) in all its Staffordshire assembly plants.

This is most likely to result in …..?

Select ONE answer

  1. a decrease in the number of deliveries
  2. a decrease in buffer stocks
  3. an increase in re-order quantities
  4. an increase in average costs

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

  1. Not correct – there will be an increase in the number of deliveries as inventory is ordered in smaller quantities as and when needed.
  2. Correct – Definition of JIT e.g. inventory system that does away with the need to hold large quantities of raw materials OR Buffer stocks are a supply of inputs held as a reserve to safeguard against unforeseen shortages or demands. This results in Electromac only holding just enough components for the current production. The need for buffer stocks is reduced because supplies are delivered as needed.
  3. Not correct – re-order quantities will be reduced as smaller amounts will be ordered each time that are specific to each job.
  4. Not correct – JIT results in a decrease in average costs as less capital is tied up in inventory and warehousing.

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