Tag: A-Level

Eight employees work in a team.

Each employee is paid £16 an hour and the team share a group bonus between them, which is based on their output of product.

For any production in excess of 500 units the team, as a group, is paid a bonus of £8 per unit. The bonus is shared equally and
paid on a weekly basis.

Last week each member of the team worked 40 hours, and the team as a whole produced 560 units.

What is the pay of each member of the team?

Select ONE answer:

1. £700
2. £760
3. £1,120
4. £1,200

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 – (40 * £16) = £640 + (560-500 *8)/8 ==> £700
2. Not correct
3. Not correct
4. Not correct

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

A business has prepared the following information for the year ended 30 April 2021.

• revenue – £220,000
  • opening inventory – £25,000
  • purchases – £120,000
  • closing inventory – (£31,000)
  • cost of goods sold – £114,000
• gross profit – £106,000

What was the inventory turnover?

Select ONE answer:

1. 86 days
2. 90 days
3. 95 days
4. 100 days

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 – Average Inventory / COS * 365 Days ==> (25 + 31)/114 * 365
3. Not correct
4. Not correct

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

The financial statements of a company include the following:

• profit for the year – £245,000
• finance costs – £120,000
• preference share capital – £220,000
• ordinary share capital – £850,000
• general reserves – £140,000
• retained earnings – £260,000

What is the return on capital employed (ROCE)?

Select ONE answer:

1. 16.67%
2. 22.90%
3. 24.83%
4. 34.11%

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 ==> (245 + 120) / (220 + 850 + 140 + 260)
4. Not correct

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

Which ratio calculates the average time a business takes to pay its credit suppliers?

Select ONE answer:

1. current ratio
2. liquid (acid test) ratio
3. trade payables days
4. trade receivables days

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
4. Not correct

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

A company issues 500 000 £1 ordinary shares for £3 each and £250 000 debentures of 6%.

By which amount will the net assets of the company increase?

Select ONE answer:

1. £750,000
2. £1,250,000
3. £1,500,000
4. £1,750,000

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 3

1. Not correct
2. Not correct
3. Correct – Dr Cash £1,750k Cr Share Capital £1,500 Cr LT Liability £250k
4. Not correct

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