Author: stuart001uk2014

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

Accounting Multiple Choice Question – 15 July 2021

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 relates to a business. 

  • debtor’s collection period  —  26 days
  • creditor’s payment period  —  34 days
  • rate of stock turnover  —  33 days

What is the business’s working capital cycle? 

Select ONE answer:

  1. 25 days
  2. 27 days
  3. 59 days
  4. 93 days

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 ==> 26 +33 – 34
  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 – 14 July 2021

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

What would increase the working capital (current) ratio of a business?

Select ONE answer:

  1. buying stock on credit for £2,000 and selling immediately for £3,000 cash
  2. paying creditors £1,000 cash
  3. purchasing a fixed asset of £10,000 on credit
  4. selling stock of £1,000 at cost price on credit

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 – 13 July 2021

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

A company wants to increase its return on capital employed in the short term.

Which course of action will achieve this?

Select ONE answer:

  1. invest in new plant and machinery
  2. reduce the level of dividends paid to investors
  3. reduce the level of overhead expenses
  4. revalue freehold land and buildings upwards

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 – 12 July 2021

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 table shows the gross profit margin and net profit margin of a company.

What caused these changes between 2019 and 2020?

Select ONE answer:

  1. a change in products sold leading to lower selling costs
  2. a loss of trade discounts on purchases but an increase in cash discounts taken from suppliers
  3. an advertising campaign to promote higher sales leading to higher selling prices
  4. an increase in both production and selling 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 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.

Business Studies Multiple Choice Question – 11 July 2021

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

Photo by Andrea Piacquadio on Pexels.com

Lucy’s website, a company that builds web applications, adopts flexible employment practices such as employees choosing their own working hours, lunchtimes and holidays. 

This is most likely to lead to a decrease in?

Select ONE answer:

  1. empowerment
  2. motivation
  3. productivity
  4. labour turnover

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 – is wrong because employees are more empowered as flexible employment gives employees more control or responsibility.
  2. Not correct – is wrong because motivation is likely to increase because employees have more choice over working conditions 
  3. Not correct – is wrong because productivity is likely to increase because employees will work harder when they are given more flexibility over their working conditions
  4. Correct – Definition of labour turnover e.g. the proportion of a workforce who leave within a year.  Lucy’s Employees may feel  more valued; happier; or more motivated.  Which would therefore reduce the number of employees who choose to leave Lucy’s company

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