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

Accounting Multiple Choice Question – 28 May 2021

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

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A business buys a computer for £2,200 on 1 January 2019.

The computer will be used for four years, after which time it will be sold for £280. The business uses the straight-line method of depreciation. 


What is the depreciation charge for the year ended 31 December 2020?

Select ONE answer:

  1. £480
  2. £550
  3. £960
  4. £1,100

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 ==> (£2,200 / 4) – £280 = £480 p.a.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 27 May 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

An item of capital expenditure has been incorrectly treated as revenue expenditure in the accounts of a business.


What is the effect of this error on the accounts of the business? 

Select ONE answer:

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 

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

Accounting Multiple Choice Question – 26 May 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

Expenditure on a machine during a year has included the following:

What is the capital cost?

Select ONE answer:

  1. none
  2. £22,300
  3. £24,700
  4. £31,900

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
  3. Not correct
  4. Not correct

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

Business Studies Multiple Choice Question – 25 May 2021

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

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UK High Street retailer, Mothercare, announced in 2019 that it was closing down all of its UK retail outlets.

This is MOST LIKELY due to an increase in….?

Select ONE answer:

  1. competition
  2. supplier credit terms
  3. cash flow
  4. turnover

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 1

  1. Correct – Correct – Definition of competition e.g. rivalry among sellers or a substitute business in the same market. More competition may lead to Mothercare losing customers to its competitors. Therefore Mothercare may have had to close its stores due to fewer customers and lower sales, and thus less profits
  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.

Business Studies Multiple Choice Question – 24 May 2021

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

woman draw a light bulb in white board
Photo by Andrea Piacquadio on Pexels.com

The employees at JCB’s UK factories have been awarded a generous 5% pay increase and a £2,000 yearly bonus.

This is MOST LIKELY to result in….?

Select ONE answer:

  1. an increase in self-actualisation
  2. a reduction in safety needs
  3. an increase in empowerment
  4. a reduction in labour turnover

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – Definition of labour turnover e.g. the proportion of a workforce who leave within a specified time period.  The pay increase and bonus may reward/motivate employees at JCB.  This could result in fewer employees wanting to leave JCB due to the higher pay for the same amount of work.

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