Month: February 2023

Accounting Multiple Choice Question – 13 February 2023

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

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The data relates to two different levels of output in a Alex plc’s finishing department:

  • machine hours – Level 1 – 16 000 & Level 2 – 20 000
  • Overheads – Level 1 £214,000 & Level 2 – £230,000

What is the amount of fixed overheads?

Select ONE answer:

  1. £16,000
  2. £64,000
  3. £150,000
  4. £198,000

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 – 20,000 – 16,000 = 4,000 == > £230k – £214K = £16k / 4,000 = £4 per hour. 16,000 * 4 = £64k == > Therefore £214k – £64k variable overheads = £150k fixed overheads
  4. Not correct

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Accounting Multiple Choice Question – 12 February 2023

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

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The table contains information for the two products X & Y of Alex plc:

  • contribution per unit – X £12 & Y £9
  • machine hours required per unit – X 6 hours & Y 3 hours
  • estimated sales demand – X 200 units & Y 200 units
  • required machine hours – X 1,200 hours & Y 600 hours
  • Factory machine capacity limited to – 1,200 hours

What is the maximum possible contribution?

Select ONE answer:

  1. £2,100
  2. £3,000
  3. £3,300
  4. £4,200

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- £9 * 200 units of Y = £1,800 for 600 hours, and balance is 100 units of X at £12 per unit for £1,200
  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 – 11 February 2023

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

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Alex plc issues a 5-year debenture bond of £1M

Interest for years 1 and 2 will be at the rate of 10% per annum, and for years 3, 4 and 5 it will be 12% per annum.

What will be the charge for interest shown in its Income Statement each year?

Select ONE answer:

  1. £100k p.a.
  2. £100k in Years 1 and 2, and £120k in Years 3, 4 and 5
  3. £112k p.a
  4. £120k p.a.

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.

Accounting Multiple Choice Question – 10 February 2023

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

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The information in the table relates to Alex plc:

  • share premium account – £240,000
  • 10 % debentures – £100,000
  • retained profit – £180,000

The company redeems the debentures at a premium of 10 %.

What will be the effect on Alex’s Statement Of Financial Position?

Select ONE answer:

  1. retained profit £70,000 / share premium account £240,000
  2. retained profit £80,000 / share premium account £230,000
  3. retained profit £170,000 / share premium account £240,000
  4. retained profit £180,000 / share premium account £230,000

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > £240,000 – £100,000 * 0.1

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Accounting Multiple Choice Question – 9 February 2023

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

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The net assets of Lucy Ltd are shown below.

  • net assets at original cost – £100M
  • net book value – £50M
  • fair value – £70M

Alex plc pays £100M cash plus £20M in shares for all the net assets.

What will the annual goodwill amortisation charge be if Alex plc applies a ten year economic life to goodwill?

Select ONE answer:

  1. £2M
  2. £3M
  3. £5M
  4. £7M

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 == > £100M + £20M – £70M = £50M / 10 years === > £5M p.a.
  4. Not correct

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