Month: March 2023

How may a company improve its profit by window dressing?

Select ONE answer:

1. applying an impairment test to goodwill
2. making a provision for redundancy
3. increasing the bad debts provision
4. reducing the rates of 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 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.

Which ratio measures the return on an investment in shares which continue to be held?

Select ONE answer:

1. dividend per share
2. dividend yield
3. earnings per share
4. interest cover

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.

An ordinary share in Alex plc, which is a quoted company has a nominal value of £0.50.

The latest financial statements show earnings per share of £0.10 and a price-earnings ratio of 15.

What is the market value of an ordinary share in Alex plc?

Select ONE answer:

1. £0.50
2. £1.50
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 2

1. Not correct
2. Correct – PE= Share Price / EPS == > 15 = x / £0.10 == > 15 / 0.10 = £1.50
3. Not correct
4. Not correct

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

What will increase gearing?

Select ONE answer:

1. a bonus issue of shares
2. an increase in the value of intangible assets
3. depreciating a fixed asset
4. repaying a bank loan

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

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

Events occurring after a Statement Of Financial Position date are classified as either ‘adjusting events’ or ‘non-adjusting events’.

Which is an example of an ‘adjusting event’?

Select ONE answer:

1. change in interest rates
2. the issue of loan stock
3. the insolvency of a major debtor
4. the purchase of a new vehicle

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

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