Accounting Multiple Choice Question – 1 October 2022

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

Photo by Pixabay on Pexels.com

The following information is given for a business.

  • Sales = £650 000
  • Cost of Sales = £(502 000) = = > Stock 1 January £19 000 + Purchases £508 000 – Stock 31 December £25 000
  • Gross Profit = £148 000

  • Inventory turnover days – 16 days
  • Trade receivables 31 December – £48,082
  • Trade payables 31 December – £44,537

What is the working capital cycle?

Select ONE answer:

  1. 11 days
  2. 21 days
  3. 43 days
  4. 75 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 – Trade Receivable days + Inventory turnover days – trade payable days = 27 days + 16 days – 32 days
  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 – 30 September 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 firm has £10,000 in the bank and buys inventory for £6,000 paying by cheque.

What will be the effect on its Current ratio and Liquid Capital ratio?

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

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

Accounting Multiple Choice Question – 29 September 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 company has the following gross profit and net profit ratios for two years.

  • gross profit % = year 1 – 26% & year 2 – 29%
  • net profit % = year 1 – 13% & year 2 – 10%

The company’s turnover has remained unchanged for both years.

What is a correct interpretation of these ratios?

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

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

Accounting Multiple Choice Question – 28 September 2022

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

Photo by Pixabay on Pexels.com

The table shows an extract from a company’s final accounts:

  • purchases – £28,000
  • cost of sales – £24,000
  • creditors – £4,200
  • accruals – £1,100

What is the trade payables days collection period for the year?

Select ONE answer:

  1. 55 days
  2. 64 days
  3. 69 days
  4. 81 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 – (£4,200 / £28,000) * 365 days
  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 – 27 September 2022

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

Photo by Pixabay on Pexels.com

A company has issued 80 000 shares of £0.50 each.

These are quoted on the stock exchange at £1.60 each.

The company makes a rights issue on a 1 for 4 basis at a price of £1.20 each.

What is the balance on the Share Capital account after the rights issue?

Select ONE answer:

  1. £50 000
  2. £100 000
  3. £120 000
  4. £160 000

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 1

  1. Correct – 1 in 4 rights issues = 80,000 shares / 4 = 20,000 * 50p = £10,000 + £40,000 = = > £50,000
  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.

%d bloggers like this: