Accounting Multiple Choice Question – 5 April 2023

Alex Banking plc policy is to close any branch that does not benefit the company financially.

When should a branch be closed?

Select ONE answer:

1. when its gross profit is declining each year
2. when both its sales and its net profit are declining
3. when its variable costs are greater than its sales revenues
4. when its fixed costs are greater than its net profit

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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