Economics Multiple Choice Question – 13 January 2018

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

A relative price is?

Select ONE answer:

  1. The number of dollars that must be given up in exchange for the good.
  2. The ratio of one price to another price.
  3. Not an opportunity cost.
  4. Also called the money price.

What is meant by the term ‘gross profit’?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2

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Accounting Multiple Choice Question – 12 January 2018

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

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

  • Long-Term Assets £300k
  • Inventory £85k
  • Accounts Receivables £40k
  • Bank Account £10k
  • Cash £5K
  • Accounts Payable £65k
  • Long-term Bank Loan £700k
  • Reserves £125k
  • Share Capital £100kRevenue £3,800k
  • Cost-of-Sales £2,400k
  • Net Profit Margin £300k
  • Purchases £1,200k

What is Woodpecker’s Capital Gearing percentage ratio?

Select ONE answer:

  1. 75.68
  2. 76.68
  3. 77.68
  4. 78.68
  5. 79.68

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 -£700k / (£700k + £125k + £100k) * 100 = 75.68%

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Accounting Multiple Choice Question – 11 January 2018

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

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

  • Long-Term Assets £300k
  • Inventory £85k
  • Accounts Receivables £40k
  • Bank Account £10k
  • Cash £5K
  • Accounts Payable £65k
  • Long-term Bank Loan £700k
  • Reserves £125k
  • Share Capital £100kRevenue £3,800k
  • Cost-of-Sales £2,400k
  • Net Profit Margin £300k
  • Purchases £1,200k

What is Woodpecker’s Trade Payable Days ratio?

Select ONE answer:

  1. 9.89
  2. 19.77
  3. 31.24
  4. 12.84
  5. 14.77

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 2 – £65k / £1,200k * 365 days = 19.77 days

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Accounting Multiple Choice Question – 10 January 2018

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

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

  • Long-Term Assets £300k
  • Inventory £85k
  • Accounts Receivables £40k
  • Bank Account £10k
  • Cash £5K
  • Accounts Payable £65k
  • Long-term Bank Loan £700k
  • Reserves £125k
  • Share Capital £100kRevenue £3,800k
  • Cost-of-Sales £2,400k
  • Net Profit Margin £300k
  • Purchases £1,200k

What is Woodpecker’s Trade Receivable Days ratio?

Select ONE answer:

  1. 1.84
  2. 2.84
  3. 3.24
  4. 3.84
  5. 4.24

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 4 – £40k / £3,800k * 365 days = 3.84 days

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Accounting Multiple Choice Question – 9 January 2018

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

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

  • Long-Term Assets £300k
  • Inventory £85k
  • Accounts Receivables £40k
  • Bank Account £10k
  • Cash £5K
  • Accounts Payable £65k
  • Long-term Bank Loan £700k
  • Reserves £125k
  • Share Capital £100kRevenue £3,800k
  • Cost-of-Sales £2,400k
  • Net Profit Margin £300k
  • Purchases £1,200k

What is Woodpecker’s Rate of Inventory Turnover (times per year) ratio?

Select ONE answer:

  1. 28.24
  2. 29.24
  3. 30.24
  4. 27.24
  5. 26.24

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 – £2,400k / £85k = 28.24

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Accounting Multiple Choice Question – 8 January 2018

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

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

  • Long-Term Assets £300k
  • Inventory £85k
  • Accounts Receivables £40k
  • Bank Account £10k
  • Cash £5K
  • Accounts Payable £65k
  • Long-term Bank Loan £700k
  • Reserves £125k
  • Share Capital £100kRevenue £3,800k
  • Cost-of-Sales £2,400k
  • Net Profit Margin £300k
  • Purchases £1,200k

What is Woodpecker’s Rate of Inventory Turnover (days) ratio?

Select ONE answer:

  1. 12.53
  2. 13.84
  3. 12.93
  4. 12.65
  5. 14.85

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 – £85k / £2,400k * 365 = 12.93 days

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Accounting Multiple Choice Question – 7 January 2018

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

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

  • Long-Term Assets £300k
  • Inventory £85k
  • Accounts Receivables £40k
  • Bank Account £10k
  • Cash £5K
  • Accounts Payable £65k
  • Long-term Bank Loan £700k
  • Reserves £125k
  • Share Capital £100kRevenue £3,800k
  • Cost-of-Sales £2,400k
  • Net Profit Margin £300k
  • Purchases £1,200k

What is Woodpecker’s Liquidity capital ratio (acid test or quick ratio)?

Select ONE answer:

  1. 2.53
  2. 3.84
  3. 2.15
  4. 8.33
  5. 0.85

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 5 – (£10k + £5k + £40k) / £65k = 0.85

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