Month: January 2025

Alex, a consultant, has made two statements about the primary focus of the users of financial statements of Lucy plc.

Statement 1 The primary focus of suppliers is on Lucy’s risk and return.

Statement 2 The primary focus of shareholders is on Lucy’s solvency.

Are these statements true or false?

Select ONE answer:

1. Statement 1 True and Statement 2 False
2. Statement 1 False and Statement 2 True
3. Statement 1 True and Statement 2 True
4. Statement 1 False and Statement 2 False

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 == > Liquidity, not risk and return, is the main concern for the entity’s suppliers. Risk and return, not solvency, are the main concern of the entity’s shareholders.

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

Three basic approaches to performance measures are measures of economy, efficiency, and effectiveness.

Economy is measured by?

Select ONE answer:

1. The amount of resources used for the tasks that have been achieved
2. The success in achieving goals and targets
3. Team member satisfaction and the motivational climate
4. The success of the team or work group in controlling its costs

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 == > Economy is measured by the success of the team or work group in controlling its costs.

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

Which of the following statements about critical success factors (CSFs) for a business is true?

Select ONE answer:

1. Low costs will always be a CSF; high sales revenue will always be a CSF
2. Low costs will always be a CSF; high sales revenue will not always be a CSF
3. Low costs will not always be a CSF; high sales revenue will always be a CSF
4. Low costs will not always be a CSF; high sales revenue will not always be a CSF

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 == > High quality might be more important than costs, high margins might be more important than revenue. We cannot therefore state that either low costs or high sales revenue will always be CSFs.

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