Day: December 2, 2023

Accounting Multiple Choice Question – 2 December 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 Ltd’s income statement includes:

  • dividend – £300k
  • increase in inventory – £200k
  • Overheads – £400k
  • purchases – £800k

If the profit percentage as a relation to revenue is 20%, what is the figure for sales?

Select ONE answer:

  1. £1,120,000
  2. £1,250,000
  3. £1,625,000
  4. £1,750,000

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 2

  1. Not correct
  2. Correct – the method to reach the sales figure is to calculate the expenses (£800k less £200k plus £400k = £1M) and gross it up by 100/80 to get £1,250k
  3. Not correct
  4. Not correct

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