Tag: A-Level

A company’s production workers are paid £16 an hour basic pay for working 7 hours a day.

Overtime is paid at the rate of a time and a quarter (basic pay plus 25%).

An additional bonus is also paid at the rate of £4 per unit for output in excess of 20 units per day.

On Monday one employee worked 10 hours and produced 25 units.

What is the employee’s pay for Monday?

Select ONE answer:

1. £192
2. £220
3. £272
4. £300

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 ==> £16 * 7 hours + (£16 *1.25 * 3 hours) + £4 * 5 extra units
2. Not correct
3. Not correct
4. Not correct

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

In 2020 a company was entirely financed by its equity and reserves which total £1,000,000.

Its return on capital employed (ROCE) was 28%.

On 1 January 2021 the company issued a 10% debenture of £300,000.

During 2021 the profit from operations increased by 20%.

No dividends were paid.

What was the ROCE for 2021?

Select ONE answer:

1. 19.1%
2. 20.9%
3. 23.4%
4. 25.8%

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 ==> 28% of £1M = £280k * 1.2 = £336K / (£1,000K + £300k + £336k)
3. Not correct
4. Not correct

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

A company provides the following information for the year ended 31 May 2021.

• total purchases – £175,000
• cash purchases – £35,000
• inventory 1 June 2020 – £12,000
• inventory 31 May 2021 – £15 000

What is the rate of inventory turnover (rounded to the nearest whole number)?

Select ONE answer:

1. 11 times
2. 12 times
3. 13 times
4. 16 times

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 – COS / Average Inventories ==> (£12,000 + £175,000 – £15,000) / ((£12,000 + £15,000) / 2)
4. Not correct

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

An investor is looking at the financial statements of a company in which he may decide to invest.

Which item helps him to rely on the financial statements?

Select ONE answer:

1. consistency of accounting policies from one period to the next
2. estimation of accounting provisions relying on the opinion of managers
3. inflation in the currency in which the financial statements are prepared
4. lapse of time since the date of the statement of financial position and when he reads the documents

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.

The table shows an extract from the financial statements of a limited company.

• ordinary share capital (£1 shares) – £500,000
• share premium – £150,000
• revaluation reserve – £200,000
• retained earnings – £250,000

What is the maximum dividend per share that can be paid?

Select ONE answer:

1. £0.50
2. £0.80
3. £0.90
4. £1.20

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 ==> £250k / 500,000 = £0.50 per share
2. Not correct
3. Not correct
4. Not correct

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