Month: December 2023

Accounting Multiple Choice Question – 11 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 Trading Ltd has the information shown below.

  • actual sales for November – £320,000
  • break-even sales for November – £400,000
  • total fixed costs for November – £150,000

What is the margin of safety for November?

Select ONE answer:

  1. £80k negative
  2. £80k positive
  3. £170k negative
  4. £250k positive

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 – £400k – £320k
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 10 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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What best describes the cost of direct materials plus direct labour costs?

Select ONE answer:

  1. absorption cost
  2. marginal cost
  3. prime cost
  4. total cost

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 – 9 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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Which name is given to the difference between a company’s actual sales and break-even sales?

Select ONE answer:

  1. margin of safety
  2. marginal cost
  3. marginal C-V-P (cost-volume-profit) analysis
  4. marginal revenue

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
  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.

Accounting Multiple Choice Question – 8 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 plc has an issued ordinary share capital of 240,000 ordinary shares of £0.50 each.

The company pays a total ordinary share dividend of £9,600.

The current market price of an ordinary share is £3.20.

What is the current dividend yield?

Select ONE answer:

  1. 1.25%
  2. 2%
  3. 4%
  4. 8%

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 – DY = Dividend per Share / Price per share – (9,600 / 240,000) / £3.20 = 1.25%
  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 – 7 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 Trading has a Trade Receivable days ratio of 40 days based on year-end receivables.

Annual sales are £180,000 of which 13 % are cash sales.

What is the year end receivables figure based on a year of 360 days?

Select ONE answer:

  1. £2,600
  2. £17,400
  3. £20,000
  4. £45,200

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 –£180k * 0.87 = (£156.6 / 360) *40 = £17.4k
  3. Not correct
  4. Not correct

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