Category: Accounting

Which item is revenue expenditure?

Select ONE answer:

1. cost of painting new office premises during construction
2. cost of repairs to factory plant and machinery
3. legal fees for the purchase of new factory premises
4. wages of a company’s own workmen for building an office extension

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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What is an advantage of using the pay back method of capital investment appraisal?

Select ONE answer:

1. calculates hire purchase instalments
2. calculates profitability
3. determines the efficiency of a process
4. evaluates risk

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

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

The standard cost of materials for production amounts to £17,100.

The materials price variance is £1,800 favourable, the materials usage variance is £1,000 adverse.

What is the actual material cost?

Select ONE answer:

1. £14,300
2. £15,300
3. £16,100
4. £16,300

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 == > £17,100 – £1,800 + £1,000

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

The cash budget of Alex Limited for the next six months shows a cash deficiency of £30,000 arising at the end of the period.

Which possible remedy will overcome the deficiency?

Select ONE answer:

1. a rights issue to existing ordinary shareholders; the issue’s net proceeds will be £35,000
2. cancelling a planned depreciation charge of £38,000
3. delaying for one year a bonus issue to existing ordinary shareholders
4. the inclusion of the company’s freehold property in the accounts at its current valuation of £200,000 instead of cost of £128,000

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
2. Not correct
3. Not correct
4. Not correct

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

The table contains information for the two products X & Y of Alex plc:

• contribution per unit – X £12 & Y £9
• machine hours required per unit – X 6 hours & Y 3 hours
• estimated sales demand – X 200 units & Y 200 units
• required machine hours – X 1,200 hours & Y 600 hours
• Factory machine capacity limited to – 1,200 hours

What is the maximum possible contribution?

Select ONE answer:

1. £2,100
2. £3,000
3. £3,300
4. £4,200

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 2

1. Not correct
2. Correct- £9 * 200 units of Y = £1,800 for 600 hours, and balance is 100 units of X at £12 per unit for £1,200
3. Not correct
4. Not correct

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