The Multiple Choice Questions Blog

What does the diagram show about costs?

Select ONE answer:

1. fixed costs are increasing
2. total costs as a % of sales are decreasing
3. variable costs per unit are decreasing
4. variable costs per unit are increasing

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

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

The debtor collection period of a business has increased from 55 to 90 days.

Which reason could not account for this?

Select ONE answer:

1. a large bad debt written off
2. a large credit sale made just before the year end
3. a major customer in financial difficulty
4. poor credit control

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.

Which answer gives the return on capital employed?

Select ONE answer:

1. net profit / sales x capital employed / sales * 100
2. net profit / sales x sales / capital employed * 100
3. sales / net profit x capital employed / sales * 100
4. sales / net profit x sales / capital employed * 100

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.

The gross profit ratio of a business has increased.

Which statement is correct?

Select ONE answer:

1. purchases have been obtained at reduced cost
2. sales have increased
3. sales returns have decreased
4. stocks have decreased

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.

A business calculated that its quick (acid test) ratio is lower this year than last year.

What caused the reduction in the ratio?

Select ONE answer:

1. an increase in creditors
2. an increase in stock
3. an increase in debtors
4. an increase in bank

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.