Accounting Multiple Choice Question – 13 August 2019

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

A £100 debit balance brought down in the cash column of a firm’s Cash Book means that…?

Select ONE answer:

  1. the firm has £100 cash in hand
  2. the amount of cash paid out exceeds the amount of cash received by £100
  3. the total of cash paid out is £100.
  4. the total of cash received is £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 1

  1. Correct
  2. Cash paid out cannot exceed cash received.
  3. The total of cash paid out could be £100 but only if the total of cash received was £200.
  4. The total of cash received could be £100 but only if there was no cash paid out.

 

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Accounting Multiple Choice Question – 12 August 2019

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

A £200 credit balance brought down in the cash columns of a firm’s cash book means that…?

Select ONE answer:

  1. the firm has spent £200 more cash than it has received.
  2. the firm has £200 cash in hand.
  3. a mistake has been made in the recording of cash.
  4. someone has stolen £200 cash.

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 – A credit balance brought down on the cash columns of a firm’s cash book would indicate that the firm has a negative amount of cash. As this is clearly not possible, a mistake must have been made.
  4. Not correct

 

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Accounting Multiple Choice Question – 11 August 2019

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

An employee of a music store went to a bank and lodged the previous night’s takings, held overnight in the firm’s safe.

This transaction should be recorded in the store’s Cash Book as……?

Select ONE answer:

    Column to Debit                  Column to Credit

  1.     Cash                                              Bank
  2.     Bank                                             Cash
  3.     Cash                                              Cash
  4.     Bank                                             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 2

  1. Not correct
  2. Correct – Lodging cash on hand increases the bank balance (thus requiring a debit entry to increase the asset of bank) and reduces the cash balance (thus requiring a credit entry to decrease the asset of cash).
  3. Not correct
  4. Not correct

 

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Economics Multiple Choice Question – 10 August 2019

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

Which of the following combination of changes is likely to increase the international competitiveness 
of a country’s products?

Select ONE answer:

Table 67

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

  1. A decrease in labour productivity and an appreciation of the currency would both be likely to increase the relative price of domestically produced products.
  2. A decrease in labour productivity would be likely to reduce it by raising wage costs. Although a depreciation of the currency would increase international competitiveness by reducing export prices and increasing import prices.
  3. An increase in labour productivity would increase international competitiveness but an appreciation of the currency would reduce it.
  4. Correct: An increase in labour productivity and a depreciation of the currency would reduce the relative price of domestically produced products. This would be likely to make domestically produced products more internationally competitive.

 

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Economics Multiple Choice Question – 9 August 2019

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

The exchange rate between the pound sterling and the US dollar is initially £1 = $1.5.

A UK firm sells a product in the USA for $300.

The exchange rate changes to £1 = $1.2 and the firm keeps the dollar price unchanged.

What will be the price of the product in pounds?

Select ONE answer:

  1. £200
  2. £250
  3. £300
  4. £360

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

This multiple choice question is suitable for Economics KS5 classes.

The answer is 2

  1. This is the initial price i.e. $300/1.5.
  2. Correct: $300/1.2.
  3. This would be the case if the exchange rate changed to £1 = $1.
  4. This is $300 x 1.2.

 

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