Month: September 2022

The table shows the calculation of the net present value of a potential project.

Which cash inflow during Year 1 will give a net present value of zero for the project?

Select ONE answer:

1. £5,516
2. £5,560
3. £5,900
4. £6,440

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 – (£5,516 * 0.91) + £4,980 = £10,000
2. Not correct
3. Not correct
4. Not correct

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Which method of investment appraisal uses profits as the basis for calculation?

Select ONE answer:

1. accounting rate of return
2. discounted cash flow
3. internal rate of return
4. payback

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

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

Which statement about standard costing is NOT true?

Select ONE answer:

1. It can be used for budgeting.
2. It can be used for responsibility accounting.
3. It can be used to calculate marginal costs.
4. It can be used to calculate the average cost of stock.

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.

A business operates a standard costing system.

At the end of the year the hourly rate paid to workers and the production per worker are less than budgeted.

A greater amount of lower priced materials than budgeted has been used.

What is the correct combination of variances?

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

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