The Multiple Choice Questions Blog

You are given the following invoice information concerning the purchase of a van by a local business.

• purchase price – £13 000
• delivery charge – £500
• sign writing – £200
• road tax – £200
• tank of fuel – £50

How much should be debited to the NCA motor van account?

Select ONE answer:

1. £13,500
2. £13,700
3. £13,900
4. £13,950

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 ==> £13,000 + £500 + £200
3. Not correct
4. Not correct

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

The following relate to a factory.

Which items make up factory overhead?

Select ONE answer:

1. 1 and 2
2. 2 and 3
3. 2 and 4
4. 4 and 5

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

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

A business uses absorption costing.

Which cost is used to value finished stock?

Select ONE answer:

1. full cost
2. prime cost
3. variable cost of production
4. variable cost of sales

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

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

What is a direct expense for a printing business?

Select ONE answer:

1. depreciation of printing machinery
2. paper used in the printing process
3. rent and rates of the factory premises
4. the capital cost of printing machinery

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

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

You are given the following information concerning a product:

• selling price — £10.00
• Variable labour costs — £3.50
• Raw material costs — £2.50
• Break-even point — 2,500 units

What is the total fixed cost?

Select ONE answer:

1. £10,000
2. £15,000
3. £16,250
4. £18,750

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 ==> (£10 – £3.5 – £2.5) = £4 * 2,500 = £10,000
2. Not correct
3. Not correct
4. Not correct

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