Accounting Multiple Choice Question – 12 September 2023

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

Photo by Pixabay on Pexels.com

The following information relates to the budgeted and actual sales of a product.

  • sales volume in units: budgeted 25,000 AND actual 23,000
  • contribution per unit: budgeted £3 AND actual £4
  • fixed costs: budgeted £30,000 AND actual £30,000

Which change in the break-even point has been caused by the actual being different from the budgeted?

Select ONE answer:

  1. 25% better
  2. 25% worse
  3. 75% better
  4. 75% worse

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 – 30.000 /3 == > 30,000 / 4
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 11 September 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

For what purpose might management undertake sensitivity analysis?

Select ONE answer:

  1. to calculate employees ́ bonuses
  2. to determine levels of depreciation
  3. to determine the effect of dividends on profit
  4. to determine the selling price of a product

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

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

Accounting Multiple Choice Question – 10 September 2023

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

Photo by Pixabay on Pexels.com

What is NOT a source of long-term finance?

Select ONE answer:

  1. bank overdraft
  2. debentures
  3. ordinary shares
  4. preference shares

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

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

Accounting Multiple Choice Question – 9 September 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

A company wishes to present its financial statements in the most favourable light.

What will achieve this?

Select ONE answer:

  1. first-in first-out stock valuation
  2. provision for bad debts
  3. revaluation of fixed assets
  4. window dressing

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

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

Accounting Multiple Choice Question – 8 September 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

Alex plc annual results are shown below:

  • profit for the year – £215,000
  • preference dividends – £15,000
  • ordinary dividends – interim paid – £25,000
  • ordinary dividends – final approved – £75,000
  • retained profit for the year – £100,000

The final ordinary dividend has been approved by the shareholders, but for financial reasons will only be paid after one year.

What are the ‘earnings’ to be included in the earnings per share calculation?

Select ONE answer:

  1. 100,000
  2. 175,000
  3. 200,000
  4. 215,000

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: £215k – £15k
  4. Not correct

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