Month: November 2023

Accounting Multiple Choice Question – 5 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

The table contains information provided by a company.

  • budgeted direct labour hours – 8,000
  • actual direct labour hours worked – 7,500
  • budgeted overhead expenditure – £104,000
  • actual overhead expenditure – £112,500

What is the amount of the overhead over / under recovery?

Select ONE answer:

  1. £7,500 under-recovered
  2. £8,500 over-recovered
  3. £8,500 under-recovered
  4. £15,000 under-recovered

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 – £112,500 – £104,00 + ((£104,000 / 8,000) * (8,000 – 7,500))

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

Accounting Multiple Choice Question – 4 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 product manufactured by Alex Trading plc uses two processes (process 1 followed by process 2).

What is the full cost of the materials used in process 2?

Select ONE answer:

  1. the cost of materials added in process 2
  2. the cost of materials used in process 1 and materials added in process 2
  3. the cost of materials, labour, and overhead transferred from process 1
  4. the cost of materials, labour and overhead transferred from process 1 plus the cost of materials added in process 2

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

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

Accounting Multiple Choice Question – 3 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

Alex Manufacturing ltd makes three products for which the following details are given below.

The same material is used by all three products and it costs £2.00 per kilo.

There is a shortage of material.

In which priority should the product be made in order to achieve maximum profit from the available material?

Select ONE answer:

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

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

Accounting Multiple Choice Question – 2 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

The table shows the annual results of Alex Trading plc’s three departments:

Department   X   Y   Z

Sales   £200,000   £240,000   £320,000

less: variable costs   £130,000   £150,000   £100,000

headquarters fixed costs – apportioned   £80,000   £90,000   £130,000

Profit for the year(loss)   (£10,000)   NIL   £90,000

Headquarters fixed costs will not be reduced if any department is closed.

What should the company do, on the basis of these results?

Select ONE answer:

  1. close department X
  2. close department Y
  3. close departments X and Y
  4. keep all departments open

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

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

Accounting Multiple Choice Question – 1 November 2023

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

Photo by Olya Kobruseva on Pexels.com

At Alex Trading Ltd’s accounting year-end, the accountant Simon writes cheques to pay trade payables and records them in the books immediately.

The cheques are then deliberately retained by the accountant for two weeks.

What effect does this have on the year-end statement of financial position?

Select ONE answer:

  1. the accounts show a higher figure for cash
  2. the accounts show a lower figure for trade payables
  3. to improve Alex Trading Ltd’s cash flow
  4. to improve Alex Trading Ltd’s gearing

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

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