The Multiple Choice Questions Blog

If average inventories held were valued at £15,000 and cost of good sold was £200,000, calculate the inventory turnover?

Select ONE answer:

1. 54.75 days
2. 82.13 days
3. 27.38 days
4. 13.69 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 ==> (AI / COS) * 365 Days ==> 27.38 days
4. Not correct

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By how much would profit change if revenues rose by £150,000, variable costs increased by £75,000 and fixed costs fell by £25,000?

Select ONE answer:

1. £25,000
2. £50,000
3. £75,000
4. £100,000

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct ==> £150k – £75K + £25k = £100k

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If the GP margin is 25% and sales were £300,000, calculate the value of gross profit?

Select ONE answer:

1. £50,000
2. £60,000
3. £75,000
4. £100,000

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 ==> £300 * 0.25 = £75k
4. Not correct

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

What are fixed costs if a business makes a profit for the year of £400,000 after turnover of £850,000 and total variable costs of £225,000?

Select ONE answer:

1. £225,000
2. £625,000
3. £425,000
4. £450,000

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 ==> T/O – VC – Profit = £225K
2. Not correct
3. Not correct
4. Not correct

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

If cash outflows are £5,000 and net cash flow is £2,000, calculate the value of cash inflows?

Select ONE answer:

1. £7,000
2. £3,000
3. (£3,000)
4. (£7,000)

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 ==> £Xk – £5k = +£2k thus £Xk is £7k
2. Not correct
3. Not correct
4. Not correct

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