Accounting Multiple Choice Question – 14 March 2023

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

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What will cause under-absorption of fixed production overheads?

Select ONE answer:

  1. absorption of overheads is based on actual expenditure and actual activity
  2. actual expenditure of overheads is below budget expenditure
  3. actual activity is above budgeted activity
  4. actual activity is below budgeted activity and actual expenditure is as budgeted

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 – 13 March 2023

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

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The break-even chart for a product is shown below.

What does XY represent?

Select ONE answer:

  1. 1.fixed costs
  2. 2.gross profit
  3. 3.net loss
  4. 4.variable costs

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

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Accounting Multiple Choice Question – 12 March 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 calculated the following accounting ratios for the year ended 30 June:

  • Gross Profit Margin% – 30% for 2005 and 33% for 2006
  • Profit in Relation to Revenue% – 15% for 2005 and 14% for 2006

What could explain the changes in the percentages?

Select ONE answer:

  1. A fall in interest payments was equal to an increase in administration costs.
  2. An increase in raw material costs was covered by an increase in selling price.
  3. An increase in the advertising budget has allowed the firm to increase the selling price.
  4. An increase in the advertising budget has led to a rise in sales volume.

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

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

Accounting Multiple Choice Question – 11 March 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
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Alex ltd’s has cash sales of £69,030 and credit sales of £1,406,070 in a year (360 days).

The Trade Receivable ratio is 40 days.

What is the closing accounts receivable’s balance in £s?

Select ONE answer:

  1. 35,152
  2. 36,878
  3. 156,230
  4. 163,900

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 – 156,230 / 1,406,070 * 360 = 40 days
  4. Not correct

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

Accounting Multiple Choice Question – 10 March 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 company has the following information in £00ks from its balance sheet:

  • taxation due – 40
  • accounts receivable – 150
  • bank overdraft – 90
  • Inventory – 110
  • proposed dividend – 70
  • accounts payable – 80

What is the liquidity (acid test or quick) or Liquid Capital ratio?

Select ONE answer:

  1. 0.54:1
  2. 0.88:1
  3. 0.93:1
  4. 1.85:1

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 1

  1. Correct – 150 / (40 + 90 + 70 + 80)
  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.