Day: September 6, 2023

Accounting Multiple Choice Question – 6 September 2023

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

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Which of the following shows the effect of Alex plc raising a loan to buy non-current assets?

Select ONE answer:

  1. Asset Use Ratio – Decrease AND Gearing – Decrease
  2. Asset Use Ratio – Decrease AND Gearing – Increase
  3. Asset Use Ratio – Increase AND Gearing – Decrease
  4. Asset Use Ratio – Increase AND Gearing – Increase

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

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