Accounting Multiple Choice Question – 22 January 2021

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

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For what purpose might management undertake sensitivity analysis?

Select ONE answer:

  1. to calculate employees’ bonuses
  2. to determine levels of depreciation
  3. to determine the effect of dividends on profit
  4. to determine the selling price of a 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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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Accounting Multiple Choice Question – 21 January 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 company makes three products for which the following details are given. 

product P £    product Q £   product R £

selling price per unit                  20                    24                 36

direct material per unit                9                    12                 15      

direct labour per unit                   5                      3                   9

The same material is used by all three products and it costs $3.00 per kilo.

There is a shortage of material. 

In which order of priority listed below should the products be made in order to achieve maximum profit from the available material? 

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 – Correct – CM R = £12, CM Q = £9, CM P = £6

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

Accounting Multiple Choice Question – 20 January 2021

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

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Which of the following may be used to smooth distributable profits from one year to another?

Select ONE answer:

  1. asset revaluation reserve
  2. capital redemption reserve
  3. general reserve
  4. provisions for depreciation

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

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

Accounting Multiple Choice Question – 19 January 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 company wishes to raise finance without increasing gearing.

Which option will it use?

Select ONE answer:

  1. a bonus issue of ordinary shares
  2. an issue of debentures
  3. can issue of preference shares
  4. a rights issue of ordinary shares

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

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

Accounting Multiple Choice Question – 18 January 2021

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

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Which is NOT a source of long-term finance?

Select ONE answer:

  1. bank overdraft
  2. debentures
  3. ordinary shares
  4. preference shares 

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.