Month: August 2022

Accounting Multiple Choice Question – 26 August 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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For what purpose might management undertake sensitivity analysis?

Select ONE answer:

  1. to calculate employees’ bonuses
  2. to determine levels of depreciation
  3. to determine the effect of dividends on profit
  4. to determine the selling price of a product

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 – 25 August 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 of the following may be used to smooth distributable profits from one year to another?

Select ONE answer:

  1. asset revaluation reserve
  2. capital redemption reserve
  3. general reserve
  4. provisions for depreciation

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

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

Accounting Multiple Choice Question – 24 August 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

A company has decided to increase its gearing.

By which method can this be achieved?

Select ONE answer:

  1. increasing retained profits
  2. issuing additional debentures
  3. issuing new ordinary shares
  4. redeeming debentures

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 – 23 August 2022

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

A company has ordinary share capital of £5 million in shares of £0.50 and has the following results (£000s):

  • operating profit before depreciation – 12 000
  • depreciation – 1 500
  • interest payable – 2 000
  • preference dividends paid – 500

What is the company’s earnings per share for the period?

Select ONE answer:

  1. £0.80
  2. £0.85
  3. £1.00
  4. £1.70

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 – £12,000 – (1,500 + 2,000 + 500) = 8,000 / (5,000,000 * 2) = 80p per share
  2. Not 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 – 22 August 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

A company has an authorised share capital of one million shares of £1.00 each and an issued capital of 800 000 shares of £1.00 each.

It pays a 10 % dividend.

The current dividend yield is 5%.

What is the market price of one share?

Select ONE answer:

  1. £1.00
  2. £1.60
  3. £2.00
  4. £2.50

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 ==> 5% = 10p / share price ==> 0.1 / 0.05 = £2
  4. Not correct

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