The Multiple Choice Questions Blog

What can cause interest cover to fall?

Select ONE answer:

1. conversion of debentures into shares
2. fall in interest rates
3. fall in operating profits
4. preference share issue

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.

Alex Limited suffered a substantial uninsured loss of £60,000 when stock was stolen from its premises.

How will the loss be disclosed in the company’s published accounts? 

Select ONE answer:

1. adjustment to reserves
2. exceptional item
3. extraordinary item
4. prior year adjustment

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.

What is included in the Directors’ Report?

Select ONE answer:

1. directors’ emoluments
2. principal activities of the company
3. trade debtors
4. turnover

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.

Which item is NOT required by the Companies Act 1985 to be disclosed in a company’s published accounts?

Select ONE answer:

1. auditors’ remuneration
2. depreciation
3. directors’ remuneration
4. legal expenses

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.

A company’s Balance Sheet at 31 December 2019 included the following 

Long term liabilities  —  Loan (repayable on 30 April 2021)  —  £50,000

Long term liabilities  —  10% debentures (2019 – 2025)  —  £100,000

The company intends to redeem half the debentures on 31 December 2021 and the remainder on 1 July 2022. 

How should these liabilities be shown in the Balance Sheet at 31 December 2020?

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 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.