Tag: A-Level

A reduction in the quantity or value of inventories held would normally?

Select ONE answer:

1. Improve cash flow
2. Worsen cash flow
3. Increase operating profit
4. Reduce fixed 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

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Leasing would be the most appropriate way to finance the purchase of?

Select ONE answer:

1. Inventories
2. Company cars
3. Trade receivables
4. Advertising campaigns

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
3. Not correct
4. Not correct

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

Why do businesses prepare budgets?

1. to communicate plans
2. to improve coordination
3. to plan annual operations
4. to plan long-term strategies

Select ONE answer:

1. 1, 2 and 3
2. 1, 2 and 4
3. 1, 3 and 4
4. 2, 3 and 4

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.

Which statements about cost–volume–profit analysis are correct?

1. Fixed costs remain constant over a range of activity.
2. Profits are calculated on an absorption costing basis.
3. Sales revenue increases in direct proportion to output.
4. There is only one product or constant sales mix.

Select ONE answer:

1. 1 and 2 only
2. 1, 2, 3 and 4
3. 1, 3 and 4 only
4. 2, 3 and 4 only

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.

Last month a company made and sold 10 000 units and earned a contribution of £20 per unit.

Its final profit, after deducting total fixed costs, was £120 000.

This month its sales volume has increased by 20%, its contribution per unit has increased by 5% and its total fixed costs have increased by 15%.

What is its profit this month?

Select ONE answer:

1. £118 000
2. £148 000
3. £160 000
4. £172 000

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 ==> (10,0000 * 1.2) * (£20 * 1.05) ==> £252,000 – FC (80,000 * 1.15)
4. Not correct

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