Accounting Multiple Choice Question – 19 May 2022

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

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The following information is available:

overhead cost £ budget 60,000 actual 66,000
direct labour hours budget 30,000 actual 35,000

Overheads are absorbed on the basis of direct labour hours.

What was the amount of over absorption or under absorption of overheads?

Select ONE answer:

  1. £4,000 over
  2. £4,000 under
  3. £6,000 over
  4. £6,000 under

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 – £60,000 / 30,000 hours = £2 per hour * 35,000 hours = £70k – £66k actual o/h ==> £4k over-absorption
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 18 May 2022

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

apple devices books business coffee
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A factory employs a large number of staff who pack different products for different customers.

What would be the most suitable basis to absorb the packing department overheads?

Select ONE answer:

  1. customer
  2. labour hours
  3. machine hours
  4. product

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.

Accounting Multiple Choice Question – 17 May 2022

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

apple devices books business coffee
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Eight employees work in a team.

Each employee is paid £16 an hour and the team share a group bonus between them, which is based on their output of product.

For any production in excess of 500 units the team, as a group, is paid a bonus of £8 per unit. The bonus is shared equally and
paid on a weekly basis.

Last week each member of the team worked 40 hours, and the team as a whole produced 560 units.

What is the pay of each member of the team?

Select ONE answer:

  1. £700
  2. £760
  3. £1,120
  4. £1,200

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 1

  1. Correct – (40 * £16) = £640 + (560-500 *8)/8 ==> £700
  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 – 16 May 2022

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 business has prepared the following information for the year ended 30 April 2021.

  • revenue – £220,000
    • opening inventory – £25,000
    • purchases – £120,000
    • closing inventory – (£31,000)
    • cost of goods sold – £114,000
  • gross profit – £106,000

What was the inventory turnover?

Select ONE answer:

  1. 86 days
  2. 90 days
  3. 95 days
  4. 100 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 2

  1. Not correct
  2. Correct – Average Inventory / COS * 365 Days ==> (25 + 31)/114 * 365
  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 – 15 May 2022

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 financial statements of a company include the following:

  • profit for the year – £245,000
  • finance costs – £120,000
  • preference share capital – £220,000
  • ordinary share capital – £850,000
  • general reserves – £140,000
  • retained earnings – £260,000

What is the return on capital employed (ROCE)?

Select ONE answer:

  1. 16.67%
  2. 22.90%
  3. 24.83%
  4. 34.11%

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 ==> (245 + 120) / (220 + 850 + 140 + 260)
  4. Not correct

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

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