Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

Accounting Multiple Choice Question – 29 July 2023

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

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Rent is paid by a business monthly in advance on the first day of each month.

The payments during this financial year have been as follows:

  • up to and including 1 June £500 per month
  • from 1 July thereafter £600 per month

Which amount(s) will appear in the accounts for the year ended 31 October?

Select ONE answer:

  1. Profit and Loss Expense – £6,400 and SOFP – £600 prepayment
  2. Profit and Loss Expense – £6,400 and SOFP – £600 accrual
  3. Profit and Loss Expense – £6,400 and SOFP – NIL
  4. Profit and Loss Expense – £7,000 and SOFP – NIL

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 – 8 months * £500 + 4 months * £600 – no SOFPT impact as paid in advance on the first day of the month.
  4. Not correct

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Accounting Multiple Choice Question – 28 July 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

When is it necessary to distinguish between revenue and capital expenditure?

Select ONE answer:

  1. when preparing cash budgets
  2. when preparing investment appraisal calculations
  3. when preparing profit and loss accounts
  4. when preparing purchase ledger control accounts

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

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

Accounting Multiple Choice Question – 27 July 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

Discounting methods have been used to evaluate an investment project over a three year life.

The project will produce annual net inflows of £2M.

£500,000 of the initial investment can be recovered at the end of the third year.

Discount factors at 10 % are:

  • Year 1 – factor 0.91
  • Year 2 – factor 0.83
  • Year 3 – factor 0.75

What is the present value of project cash inflows?

Select ONE answer:

  1. £4.98M
  2. £5.36M
  3. £5.48M
  4. £6.38M

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 – Y1 £2M * 0.91 = £1.82M + Y2 £2M * 0.83 = £1.66M + Y3 £2M * 0.75 = £1.5M + IV £0.5M * 0.75 = £0.375M == > £5.36M
  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 – 26 July 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

The following four methods are used to evaluate projects.

  • accounting rate of return
  • internal rate of return
  • net present value
  • payback

Which methods are based on using cash flows?

Select ONE answer:

  1. 1,2,3 and 4
  2. 1,3 and 4 only
  3. 2,3 and 4 only
  4. 2 and 3 only

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

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

Accounting Multiple Choice Question – 25 July 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

The cost of sales of Alex ltd comprises of direct materials and direct labour.

At the end of a trading period the following variances are calculated.

  • direct materials price variance – £1,400 FAV
  • direct materials usage variance – £900 ADV
  • direct labour efficiency variance – £500 FAV
  • direct labour rate variance – £1,200 ADV

If the actual cost of sales was £18 500, what was the standard cost of sales?

Select ONE answer:

  1. £18,100
  2. £18,300
  3. £18,500
  4. £18,700

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 – £18,500 + £1,400 – £900 + £500 – £1,200
  3. Not correct
  4. Not correct

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