Month: June 2023

Accounting Multiple Choice Question – 25 June 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 sells its product for £10 per unit and each unit has variable costs of £6 per unit.

Alex plc’s fixed costs for the year are:

  • factory rent – £30k
  • other fixed costs – £70k

What is the break-even point?

Select ONE answer:

  1. 10 000 units
  2. 16 667 units
  3. 17 500 units
  4. 25 000 units

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 – (£30k + £70k) / (£10 – £6)

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Accounting Multiple Choice Question – 24 June 2023

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

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Lucy Ltd has sales of £192,000, fixed costs of £40,000 and a contribution / sales ratio of one-third.

What are the profits of Lucy Ltd in £s?

Select ONE answer:

  1. 24,000
  2. 50,667
  3. 64,000
  4. 88,000

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 1

  1. Correct – £192k / 3 = £64k – £40k = £24k
  2. Not correct
  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 – 23 June 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 shows the capital structure of Alex plc is as follows:

  • ordinary shares of £1 each – £100k
  • share premium account – £200k
  • retained profits – £300k
  • 15% Debenture Loan (issued 5 years ago) – £400k
  • Total Share and Debt Capital – £1M

Operating profits average £260k per annum.

What is the return on shareholders’ funds of Alex plc’s shareholders?

Select ONE answer:

  1. 26.0%
  2. 33.3%
  3. 43.3%
  4. 66.7%

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 – £260k – (£400k * 15%) = = > £200k / £0.6M = 33.33%, ROCE would be £260k / £1M = = > 26%
  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 – 22 June 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

The accounts of Alex plc show that it has increased its sales revenue by 50 % in one year, whilst its cost of sales has increased by 60 % over the same period.

What is the explanation for the change in the gross profit margin?

Select ONE answer:

  1. an increase in marketing expenses
  2. an increase in sales price
  3. an increase in sales volume
  4. an increase in supplier price

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

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

Accounting Multiple Choice Question – 21 June 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 shows information for Alex plc at the year end.

  • average inventory – £25k
  • credit sales – £150k
  • credit purchases – £112k
  • total purchases – £140k
  • trade payables – £28k
  • trade receivables – £39k

What is the payment period for trade payables (to the nearest day)?

Select ONE answer:

  1. 68 days
  2. 73 days
  3. 91 days
  4. 95 days

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 – £28k / £112k * 365
  4. Not correct

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