Accounting Multiple Choice Question – 21 April 2021

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 relates to labour costs. 

  • standard pay rate per hour  —  £7.50
  • actual pay rate per hour  —  £9.00
  • actual hours worked  —  60,000 hours
  • labour efficiency variance  —  £12,000 adverse

What is the standard number of labour hours for actual output?

Select ONE answer:

  1. 48,667
  2. 51,333
  3. 58,400
  4. 61,600

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 ==> (60,000 – X) * £7.50 = £12,000 Adverse where X = 58,400
  4. Not correct

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Accounting Multiple Choice Question – 20 April 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
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The cost of sales for a business comprises direct materials and direct labour.

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

If the actual cost of sales was £12,220, what is the standard cost of sales?

Select ONE answer:

  1. £12,020
  2. £12,120
  3. £12,320
  4. £12,420

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 ==> £12,220 – (£800 + £750) + (£700 + £650)
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 19 April 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
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A company’s debtors total £42,000 when the debtors’ days are 40.

 The company budgets in the coming year for a 30% increase in turnover and debtors’ days reduced to 30.

What will the budgeted debtors be at the year end?

Select ONE answer:

  1. £24,231
  2. £31,500
  3. £40,950
  4. £43,077

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 ==> £42,000 / 40 = £1,050 * 1.3 * 30 ==> £40,950
  4. Not correct

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

Accounting Multiple Choice Question – 18 April 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
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The table shows the fixed budget for a business as follows.

sales and production units  —  20,000

sales value  —  £400,000
variable costs  —  £280,000
fixed costs  —  £50,000

Actual production and sales were 14,000 units.

Using a fixed budget, what would profit be?

Select ONE answer:

  1. £28,000
  2. £34,000
  3. £49,000
  4. £84,000

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 ==>  £400,000 / 20,000 – £280,000 / 20,000 = CM £6 * 14,000 units – £50,000 ==> £34,000
  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 April 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 a company’s estimated sales. 

  • February – Cash Sales £10,000  /  Credit Sales – £15,000
  • March – Cash Sales £10,000  /  Credit Sales – £25,000
  • April – Cash Sales £10,000  /  Credit Sales – £35,000

Debtors are expected to pay as follows: 

  • 60 % in month following sale
  • 40 % in second month following sale

How much cash from sales is received in April?

Select ONE answer:

  1. £21,000
  2. £25,000
  3. £31,000
  4. £45,000

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 ==> £10,000 + Feb Sales 15,000 * 0.4 + March Sales 25,000 * 0.6
  4. Not correct

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