Tag: A-Level

When a shareholder sells some shares for less than he paid for them, what will happen to the share capital of the company?

Select ONE answer:

1. It will fall by the nominal value of the shares sold.
2. It will fall by the sales proceeds of the shares sold.
3. It will increase by the amount received from the sale of the shares.
4. It will remain the same as before.

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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

A company is financed by: 

1. 10,000 £1 ordinary shares
2. £5,000 10% loan

Net profit before interest and taxation is £2,500. 

Tax payable is £400. 

What is the maximum dividend per share payable from this year’s profits? 

Select ONE answer:

1. £0.16
2. £0.20
3. £0.21
4. £0.25

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 — (£2,500 – (£5,000 *0.1) – £400) / 10,000 = £0.16
2. Not correct
3. Not correct
4. Not correct

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

The treasurer of a tennis club has provided the following information for a year.

What will the club’s Income and Expenditure account show?

Select ONE answer:

1. A surplus of £1,560
2. A surplus of £1,670
3. A surplus of £1,740
4. A surplus of £1,850

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 – (75 * £95) – (£850 + £110 – £95 + £4,700)
2. Not correct
3. Not correct
4. Not correct

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

A company has an authorised share capital of 2 million £0.25 ordinary shares of which 1.6 million 
are in issue

It is proposed to pay a dividend totalling £40 000.

Which correctly describes the amount of dividend?

Select ONE answer:

1. £360
2. £560
3. £940
4. £1,140

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 – £40,000 / (1,600,000 / 0.25)
3. Not correct
4. Not correct

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

A business was started on 1 January. The purchase and sales of stock for January were:

The business use the First-In First-out (FIFO) method of stock valuation.

What was the gross profit for January?

Select ONE answer:

1. £650
2. £700
3. £750
4. £1,150

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 – £1600 – £600 – £250 = £750
4. Not correct

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