Business Studies Multiple Choice Question – 13 October 2017

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

The Boston Matrix…?

Select ONE answer:

  1. Measures the sales of one product over time
  2. Measures the cash-flow position of a firm over time
  3. Shows the profits of one company relative to others
  4. Shows the position of a firm’s products in terms of market share and market growth
  5. Forecasts the sales of a firm’s product

How is the Boston Matrix used in marketing planning?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 4 – Like Ansoff’s matrix, the Boston Matrix is a well known tool for the marketing manager. It was developed by a large US consulting group called Boston Consulting and is an approach to product portfolio planning. It has two determining aspects namely relative market share (which is relative to your competition) and market growth.

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Accounting Multiple Choice Question – 12 October 2017

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

At 30 November, Charles is owed a total of £72,660 by his customers. His receivables allowance brought forward from the previous year end is £11,700. He estimates that his receivables allowance should be equivalent to 15% of the amounts due from customers.

What value should be included in the income statement for receivables expense for the year to 30 November?

Select ONE answer:

  1. £801 debit
  2. £10,899 debit
  3. £801 credit
  4. £10,899 credit
  5. £11,700 credit

Show your workings to arrive at your answer, and explain and justify your reasons?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – The receivables allowance should be equivalent to 15% of the amounts due from customers (£72,660 x 15% = £10,899). If a candidate completes this calculation and then reviews the choices, there is a danger that, because £10,899 is included in two of the choices, one or other of those choices will be selected. This ignores the fact that the amount to be included in the income statement is the movement in the allowance – which has fallen from £11,700 to £10,899, or £801. A reduction in the allowance will be a credit in the income statement, thus the answer is 3.

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Accounting Multiple Choice Question – 11 October 2017

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

Information relating to two production processes F&G Are as follows:

Table 11

For each process, was there an abnormal loss or an abnormal gain? Select ONE answer:

Table 12

Show your workings to arrive at your answer, and explain and justify your reasons?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – Process F’s normal loss is 8%, thus expected output is 92% of input. Input was 65,000 litres. Thus expected output would be 59,800 litres. Actual output was 58,900 litres.  As actual output was less than expected, there was an abnormal loss. For process G the normal loss is 5%, thus expected output is 95% of input. Input was 37,500 litres. Thus expected output would be 35,625 litres. Actual output was 35,700 litres. As actual output was more than expected, there was an abnormal gain.

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Accounting Multiple Choice Question – 10 October 2017

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

A retailer has never kept accounting records, but wishes to know the value of the business.

Which statement would provide the retailer with the value of the business?

Select ONE answer:

  1. cash flows
  2. changes in equity
  3. financial position
  4. income
  5. order book

Give two reasons why the value of a business is not included in the financial statements: ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – The statement of financial position is another name for the balance sheet. It is one of the main financial statements and it reports an entity’s assets, liabilities, and the difference in their totals.  The amounts reported on the statement of financial position are the amounts as of the final moment of an accounting period.

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Accounting Multiple Choice Question – 9 October 2017

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

The following information is available about rent received for the year ended 31 March 2016.

Table 10

How much should be shown as income in the income statement for the year ended 31 March 2016?

Select ONE answer:

  1. £8,410
  2. £9,250
  3. £9,380
  4. £9,510
  5. £10,350

Show your workings to arrive at your answer, and explain and justify your reasons?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 1 – Receipts during the year were £9,380 which included the moneys owed to the business in the debit balance brought forward of £550. Because there is a credit balance of £420 at the end of the year, showing moneys are owed by the business to the person renting from them, this too needs to be subtracted leaving the balance of £8,410 being the income of the year.

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Accounting Multiple Choice Question – 8 October 2017

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

Which of the following correctly lists items to be shown in a partnership appropriation account?

Select ONE answer:

  1. drawings, interest on drawings, partnership salaries
  2. interest on drawings, interest on a partner’s loan, shares of residual loss
  3. interest on capital accounts, interest on drawings, partnership salaries
  4. interest on a partner’s loan, partnership salaries, shares of residual profit
  5. drawings, partnership salaries, shares of residual profit

Define and explain the differences between interest on capital accounts and interest on drawings:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – The distribution of profits is calculated after the net profit or net loss in the Profit and loss account. The accounts appropriated in this account are: Interest on capital accounts; Partners’ salaries; Interest on drawings.

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Accounting Multiple Choice Question – 7 October 2017

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

A sole trader received an order from a credit customer on the last day of the financial year 31 May 2016. No entries were made in the accounting records for the sale of goods until the invoice was raised on 3 June 2016 when the goods were shipped.

Which accounting concept is being applied?

Select ONE answer:

  1. Consistency
  2. Going concern
  3. Prudence
  4. Realisation
  5. Separate Entity

Define and explain the accounting convention of ‘Materiality’?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – With this convention, the accounts recognise any transactions (and any profits arising from them) at the point of sale or transfer of legal ownership – rather than just when cash actually changes hands. For example, a company that makes a sale to a customer can recognise that sale when the transaction is legal – at the point of contract. The actual payment due from the customer may not arise until several months later, if the customer has been granted some credit terms. In this case an order has been received on the last day of the financial year 31 May 2016, but the actual good were shipped on 3 June 2016, and it is at this point that the sale is related and the appropriate entries for this credit customer raised of Dr Debtors Cr Sales.

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