The Multiple Choice Questions Blog

A company has been wound up and the only assets that remain have realised £45,000.

A summary of the company’s capital structure shows:

1. ordinary shares – £20,000
2. preference shares – £40,000
3. loan stock – £30,000

How will the £45,000 be distributed?

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 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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The information shows the capital and reserves of a company according to its last published accounts. 

1. ordinary shares of £1.00 each – £ 200,000
2. redeemable preference shares of £1.00 each – £50,000
3. Profit and Loss Account – £68,000

The redeemable preference shares were originally issued at par. They have now been redeemed at a premium of 25 %. 

A new issue of 50 000 ordinary shares of £1.00 was made at a premium of £0.15 per share to finance the redemptions. 

What will be the balance on the Share Premium account and Profit and Loss Account after the share redemption? 

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 -50,000 * £0.15 = £7,500 + £68,000 – (50,000 *0.25)
4. Not correct

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

The table shows opening and closing balances for the Rent Receivable account.

During the year, £111 000 rental income was received.

What is the total rent receivable for the year? 

Select ONE answer:

1. £110,600
2. £111,000
3. £112,800
4. £114,000

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 – £111,000 + £4,200 – £1,600 – £2,000 + £2,400

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

The information relates to a product. 

What are the variable unit costs? 

Select ONE answer:

1. £2.00
2. £2.50
3. £4.00
4. £6.00

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 – £6,000 / £4 = £1,500 * £10 = £15,000

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

What does the diagram show?

Select ONE answer:

1. absorption based on actual expenditure and actual activity
2. actual expenditure below budget expenditure
3. actual activity above budget activity
4. actual activity below budget and expenditure as budgeted

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.