Category: Accounting

If the total of a business’s sales for the month of May is £300,000 and its gross profit is equal to 50% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

1. £100,000
2. £150,000
3. £225,000
4. £200,000

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 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 50% of the Cost of Sales
£300,000 – Cost of Sales = 50% of the Cost of Sales
£300,000 = Cost of Sales + 50% of the Cost of Sales
£300,000 = 140% of the Cost of Sales = Cost of Sales * 1.5
Cost of Sales = £300,000 / 1.5 = £200,000

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

If the total of a business’s sales for the month of May is £400,000 and its gross profit is equal to 25% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

1. £80,000
2. £100,000
3. £300,000
4. £320,000

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 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 25% of the Cost of Sales
£400,000 – Cost of Sales = 25% of the Cost of Sales
£400,000 = Cost of Sales + 25% of the Cost of Sales
£400,000 = 125% of the Cost of Sales = Cost of Sales * 1.25
Cost of Sales = £400,000 / 1.25 = £320,000

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

If the total of a business’s sales for the month of May is £300,000 and its gross profit is equal to 25% of its Cost of Sales, then its Cost of Sales for May was ………… ?

Select ONE answer:

1. £60,000
2. £75,000
3. £225,000
4. £240,000

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 4
Sales – Cost of Sales = Gross Profit
Sales- Cost of Sales = 25% of the Cost of Sales
£300,000 – Cost of Sales = 25% of the Cost of Sales
£300,000 = Cost of Sales + 25% of the Cost of Sales
£300,000 = 125% of the Cost of Sales = Cost of Sales * 1.25
Cost of Sales = £300,000 / 1.25 = £240,000

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

Which of the following is prepared in order to determine a firm’s net profit or net loss for an accounting period?

Select ONE answer:

1. a trading account
2. a profit and loss account
3. a trial balance
4. a balance sheet

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 – determines the gross profit only
3 – purpose is to show the total of the debit balances brought down in its nominal or general ledger equals that of the credit balances brought down
4 – prepared to show the financial position of the entity

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

An error of original entry arises when ……. ?

Select ONE answer:

1. an incorrect figure is entered on the correct sides of the correct ledger accounts
2. a transaction is not entered at all in the general (nominal) ledger double-entry accounting records
3. a correct figure is entered in the double-entry accounting records, once in the correct ledger account and once in the wrong person’s account
4. two errors are made, one of which cancels out the other

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
2 – is an error of omission
3 – is an error of commission
4 – is a compensating error

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