Accounting Multiple Choice Question – 8 December 2023

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

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Alex plc has an issued ordinary share capital of 240,000 ordinary shares of £0.50 each.

The company pays a total ordinary share dividend of £9,600.

The current market price of an ordinary share is £3.20.

What is the current dividend yield?

Select ONE answer:

  1. 1.25%
  2. 2%
  3. 4%
  4. 8%

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 – DY = Dividend per Share / Price per share – (9,600 / 240,000) / £3.20 = 1.25%
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 7 December 2023

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

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Alex Trading has a Trade Receivable days ratio of 40 days based on year-end receivables.

Annual sales are £180,000 of which 13 % are cash sales.

What is the year end receivables figure based on a year of 360 days?

Select ONE answer:

  1. £2,600
  2. £17,400
  3. £20,000
  4. £45,200

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 –£180k * 0.87 = (£156.6 / 360) *40 = £17.4k
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 6 December 2023

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

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Which actions would improve the liquidity (acid test) ratio of Alex Trading Ltd in the short term?

  • receivables paying their debts
  • delaying paying payables
  • selling a number of surplus non-current assets
  • selling inventory

Select ONE answer:

  1. 1 and 2
  2. 2 and 3
  3. 1 and 4
  4. 3 and 4

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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Accounting Multiple Choice Question – 5 December 2023

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

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Assets and liabilities of Alex Trading Ltd at its year end include the following information.

  • accruals – £5,000
  • bank overdraft – £6,800
  • cash – £600
  • prepayments – £4,500
  • proposed dividend – £12,000
  • Inventory – £51,800
  • trade payables – £20,100
  • trade receivables – £24,200

What is the current ratio?

Select ONE answer:

  1. 0.67 : 1
  2. 1.85 : 1
  3. 2.19 : 1
  4. 2.54 : 1

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 – (£51,800 + £24,200 + £4,500 + £600) / (£5,000 + £6,800 + £12,000 + £20,100) == > £81,100 / £43,900 == > 1.85 : 1
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 4 December 2023

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

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At the beginning of the year Alex Trading plc has authorised share capital of 800,000 ordinary shares of £0.25 each and an issued share capital of 400,000 ordinary shares of £0.25.

During the year, Alex Trading plc makes a further issue of 200,000 ordinary shares at a price of £0.60.

What is the balance on the share capital account at the end of the year?

Select ONE answer:

  1. £150,000
  2. £22,0000
  3. £250,000
  4. £350,000

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 – (400,000 * £0.25) + (200,000 * £0.25)
  2. Not correct
  3. Not correct
  4. Not correct

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