Accounting Multiple Choice Question – 16 April 2021

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

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What is a master budget?

Select ONE answer:

  1. a budget based on a limited factor
  2. a cash budget
  3. a flexible budget
  4. a set of budgeted final accounts

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 – 15 April 2021

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

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The capital structure of a company is given:

  • 300 000 ordinary shares of £0.50  —  150,000 
  • Reserves  —  £85,000
  • 10% debentures 2024 – 2025  —  £60,000

The company then issues £20,000 8% debenture stock 2028 – 2030, followed by the issue of bonus shares on a one for three basis.

Finally it makes a rights issue of 1 ordinary share for every two already held at £0.80 per share.

How will these transactions affect the Balance Sheet? 

Select ONE answer:

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
  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 – 14 April 2021

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

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How may a company ‘window dress’ its financial statements?

What will achieve this?

Select ONE answer:

  1. amortising Goodwill as soon as it arises
  2. failure to write down freehold property following a revaluation shortly after the Balance Sheet date
  3. omitting to write down stock which has been stolen after the Balance Sheet date
  4. writing off debts before they have become bad

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
  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 – 13 April 2021

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

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A company wishes to reduce its gearing.

What will achieve this?

Select ONE answer:

  1. a bonus issue of ordinary shares
  2. an issue of debentures
  3. an issue of convertible loan stock
  4. a rights issue of ordinary 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 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 – 12 April 2021

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

When deciding whether to transfer money from an interest bearing bank account to an investment in ordinary shares, which of the following ratios should be considered?

Select ONE answer:

  1. dividend yield
  2. earnings per share
  3. interest cover
  4. return on shareholders’ funds

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.