Tag: A-Level

The data given relates to a small business.

• sales – £12 000
• variable costs – £9 000
• fixed costs – £1 800
• profit – £1 200

What is the contribution to the sales ratio?

Select ONE answer:

1. 10%
2. 25%
3. 75%
4. 90%

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 ==> Sales – VC = CM ==> CM / Sales = Contribution to Sales Ratio ==> £3 000 / £12 000 = 25%
3. Not correct
4. Not correct

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

The diagram shows a break-even chart.

What is indicated by X?

Select ONE answer:

1. total costs
2. total fixed costs
3. total sales
4. total variable costs

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. Not correct
3. Not correct
4. Not correct

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

Given below are extracts from a company’s Profit and Loss Account and Statement Of Financial Position for last year.

                                                                    Profit and Loss Account £000 

• profit before interest and tax – £200k
• interest paid – £(20)k
• net profit before taxation – £180k
• taxation – £(60)k
• dividends – £(10)k
• retained profit for year – £110k

                                                                    Statement Of Financial Position £000 

• Total assets – £1 000k
• long term loan – (£100)k
• Net current assets – £900k
• share capital and reserves – £900k

What is the return on total capital employed?

Select ONE answer:

1. 18%
2. 20%
3. 22.2%
4. 25.7%

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 ==> Profit before interest and tax / Capital Employed (Share capital & reserves + NCL) = £200k / £1,000k = 20%
3. Not correct
4. Not correct

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