Category: Accounting

Accounting Standards require a statement of total recognised gains and losses to be reported.

Which item, arising during the year, will be included in the statement?

Select ONE answer:

1. dividend payable
2. Goodwill written off to reserves
3. premium on shares issued
4. prior year adjustment

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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Which of the following is NOT required to be disclosed in published company accounts?

Select ONE answer:

1. accounting policies
2. auditors’ fees
3. directors’ remuneration
4. rent paid for premises

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.

Which item is NOT required in the Report of Directors of a limited company?

Select ONE answer:

1. details of export sales
2. future developments for the business
3. the names of the directors
4. the proposed dividend details

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.

Y Ltd purchases the business of J Brown by issuing £1 shares at a premium of £0.20.

Y Ltd agrees to take over J Brown’s assets and liabilities at the date of the acquisition as follows.

Goodwill is valued at £10,000.

How many shares will J Brown receive from Y Ltd?

Select ONE answer:

1. 158,000
2. 175,000
3. 200,000
4. 210,000

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 – (£150k + £75k – £5K – £20k + £10k) ==> £210k / £1.20
3. Not correct
4. Not correct

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

When the business of X was purchased by Y plc, negative Goodwill of £100,000 arose.

The following table shows an extract of X’s Balance Sheet at the purchase date.

What was the purchase price of X?

Select ONE answer:

1. £300,000
2. £500,000
3. £600,000
4. £700,000

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 – £450k – £50k = £400k – £100k = £300k
2. Not correct
3. Not correct
4. Not correct

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