Month: November 2023

Accounting Multiple Choice Question – 15 November 2023

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

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A transport business owned by Alex, the sole proprietor, purchased a motor vehicle.

This was charged to the Motor Expenses account. 

What are the effects of this on the end-of-year statement of financial position?

Select ONE answer:

  1. Non-current assets understated & current assets understated
  2. Non-current assets overstated & current assets overstated
  3. Non-current assets overstated & capital account overstated
  4. Non-current assets understated & capital account understated

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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Accounting Multiple Choice Question – 14 November 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

A vehicle cost £30,000. 

The vehicle was later sold for £9,000 and the profit on disposal was £1,500.

What was the accumulated depreciation of the vehicle on disposal?

Select ONE answer:

  1. £7,500
  2. £9,000
  3. £21,000
  4. £22,500

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 – (£9k – £1.5k) = £22.5k

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

Accounting Multiple Choice Question – 13 November 2023

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

apple devices books business coffee
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Alex Trading plc has £5M to invest and has identified the following the following five projects:

  • project number 1 — £5M capital required — £1.4M NPV of project
  • project number 2 — £4M capital required — £1.2M NPV of project
  • project number 3 — £3M capital required — £1.0M NPV of project
  • project number 4 — £2M capital required — £0.8M NPV of project
  • project number 5 — £1M capital required — £0.5M NPV of project

Which projects should Alex Trading plc select?

Select ONE answer:

  1. Project 1 Only
  2. Project 2 and 5
  3. Project 2 and 4
  4. Project 3 and 5

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 – 12 November 2023

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

Alex Trading Ltd is evaluating whether to invest in a project.

The table shows estimates for the project with a discount factor (8%)

initial investment
year 0 – £58,500 == > DCF 1.000

projected cash flows
year 1 – £37,300 == > DCF 0.926
year 2 – £21,200 == > DCF 0.857
year 3 – £19,500 == > DCF 0.794

What is the net present value (NPV) of the project to Alex Trading Ltd?

Select ONE answer:

  1. -£19,500
  2. -£9,691
  3. +£9,691
  4. +£19,500

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 – Minus £58,500 + (£37,300 * 0.926) + (£21,200 * 0.857) + (£19,500 * 0.794)
  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 November 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 Trading Ltd invests in a project which cost £210,000.

The project will yield annual cash flows of £90,000 for each of the next three years.

After providing annual depreciation of £10,000 the project will yield an annual profit of £80,000.

What is the payback period, assuming profits and depreciation arise at the year-end?

Select ONE answer:

  1. 2.33 years
  2. 2.50 years
  3. 2.62 years
  4. 3 years

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 – £210k – £90k – £90k – £30k / £90k == > 2 1/3 years
  2. Not correct
  3. Not correct
  4. Not correct

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