Month: October 2022

Accounting Multiple Choice Question – 16 October 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 following data is available for a company:

  • £1 ordinary shares – 100M
  • £1 preference shares – 50M
  • net profit (before dividends) – £55M
  • ordinary dividend – £15M
  • preference dividend – £5M

The market price of one ordinary share is £10.

What is the price / earnings (P/E) ratio?

Select ONE answer:

  1. 18.2
  2. 20
  3. 25
  4. 28.6

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 = = > EPS is £55M – £5M = £50M / 100M = 50p per share = = > £10 / £0.5 = 20 PE
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 15 October 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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Companies are required to include a statement of total recognised gains and losses within their published financial accounts.

Below is information extracted from the financial statements of a company for the year ended 31 March 2015.

  • premium received on the issue of shares – £150k
  • profit on ordinary activities after taxation – £600k
  • unrealised surplus on the revaluation of property – £280k

What should the company show as the net gain for the year?

Select ONE answer:

  1. £730k
  2. £750k
  3. £880k
  4. £1,030k

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 = £600k + £280k
  4. Not correct

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

Accounting Multiple Choice Question – 14 October 2022

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

Photo by Olya Kobruseva on Pexels.com

Which of these items must be disclosed, according to company law, in the notes to a Company’s published Profit and Loss Account?

Select ONE answer:

  1. a review of the company’s activities for the year
  2. the remuneration of the auditors
  3. exceptional items
  4. details of research and development activities undertaken

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 – 13 October 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 is not required in the Report of Directors of a limited company?

Select ONE answer:

  1. details of export sales
  2. future developments for the business
  3. the names of the directors
  4. the proposed dividend details

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

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

Accounting Multiple Choice Question – 12 October 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’s year end is 30 June 2015.

The following events took place after the year-end:

  • On 27 July 2015 a major fire took place at the company’s factory.
  • On 8 August 2015 a major trade receivable at 30 June 2015 went into liquidation.

In accordance with SSAP 17, Accounting for post balance sheet events, how should the two events be treated in the financial statements?

Select ONE answer:

  1. fire – accrued in accounts & trade receivable liquidation – accrued in accounts
  2. fire – accrued in accounts & trade receivable liquidation – disclosed in notes
  3. fire – disclosed in notes & trade receivable liquidation – accrued in accounts
  4. fire – disclosed in notes & trade receivable liquidation – disclosed in notes

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.