Accounting Multiple Choice Question – 31 January 2023

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

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A trader provides the following financial information.

  • goodwill – £10,000
  • Non-current assets at net book value – £20,000
  • current assets – £15,000
  • trade creditors – £5,000
  • bank overdraft – £2,000

The trader accepts an offer from a company to take over all his assets and liabilities, excluding the bank overdraft.

The trader receives ordinary shares of £1.00 each at a premium of £0.25.

How many shares will the trader receive?

Select ONE answer:

  1. 24,000
  2. 30,400
  3. 32,000
  4. 40,000

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 3

  1. Not correct
  2. Not correct
  3. Correct == > (£10k + £20k + £15k – £5k) / 1.25 = 32,000 shares
  4. Not correct

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Accounting Multiple Choice Question – 24 January 2023

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

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A department makes radios.

The production at the end of the month was 1000 units, of which 600 units were completed and 400 units were 50% complete.

production costs for the month

  • materials – £60,000
  • labour – £30,000
  • departmental overheads – £10,000

What is the cost per unit?

Select ONE answer:

  1. £100
  2. £112
  3. £125
  4. £150

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 == > (£60 + £30 + £10) / (600 + 400/2) = £125
  4. Not correct

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

Accounting Multiple Choice Question – 21 January 2023

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

What is a variable production cost for a manufacturer?

Select ONE answer:

  1. depreciation of equipment
  2. factory business rates
  3. purchases of raw materials
  4. storekeepers’ wages

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

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

Accounting Multiple Choice Question – 18 January 2023

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

During the year ended 31 March 2016, Alex plc made sales of £560,000 of which 25% were for cash.

The trade receivables at 31 March 2015 were £52,000 and at 31 March 2016 they were £56,000.

What is the Trade Receivables Days collection period based on the average receivables of the two year-ends?

Select ONE answer:

  1. 34 days
  2. 35 days
  3. 47 days
  4. 49 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 3

  1. Not correct
  2. Not correct
  3. Correct = = > (52 + 56) / 2) = £54k average debtors / (£560k * 75%) * 365 days
  4. Not correct

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

Accounting Multiple Choice Question – 14 January 2023

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

Which statement is correct?

Select ONE answer:

  1. A bonus issue of shares will increase the amount of cash available to the company.
  2. A rights issue of shares is always made at the nominal value of the shares.
  3. A rights issue of shares will increase the amount of cash available to the company.
  4. If shares are issued at an amount that is more than the nominal value of the shares, the excess must be debited to the share premium account.

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

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

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