Tag: A-Level

Economics Multiple Choice Question – 29 March 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which of the following is a consequence of using money rather than a barter system?

Select ONE answer:

  1. It decreases specialisation
  2. It decreases the ease of borrowing
  3. It decreases the need for a double coincidence of wants
  4. It decreases trade

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

  1. It will increase specialisation because money is easier to exchange for an economic good.
  2. It will increase the ease of borrowing because money is easier to exchange for an economic good
  3. Correct: It will decrease the need for a double coincidence of wants because there is no longer the need to find two persons whose disposable processions mutually match each other’s wants.
  4. It will increase trade because money is easier to exchange for an economic good.

 

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Economics Multiple Choice Question – 28 March 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which of the following describes a free good?

Select ONE answer:

  1. A free good is one given away to consumers to promote the sale of other goods
  2. A free good is one provided free of charge to consumers by the government
  3. A free good is one that gives zero satisfaction to consumers
  4. A free good is one that has zero opportunity cost

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

  1. Subsidised by retailer/producer.
  2. Subsidised by the government.
  3. Zero marginal utility.
  4. Correct: Definition.

 

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Accounting Multiple Choice Question – 23 February 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which of the following pairs of events would increase the capital of a firm?

Select ONE answer:

  1. An increase in the firm’s fixed assets and a corresponding decrease in its current assets.
  2. An increase in the firm’s fixed assets and a corresponding increase in its liabilities.
  3. A decrease in the firm’s current assets and no change in its liabilities.
  4. An increase in the firm’s assets and a smaller increase in its liabilities.

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

  • Capital = Assets – Liabilities

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Accounting Multiple Choice Question – 22 February 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

On 1 January, a sole trader had capital of £25,000. During the year, he withdrew £16,000 for his own use and, at 31 December, he had capital of £26,000. If he did not introduce any new capital during the year, his net profit for the year was?

Select ONE answer:

  1. £17,000
  2. £23,000
  3. £29,000
  4. £32,000

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 1

  • As no capital has been introduced during the year, Capital at 31 December = Capital at 1 January + Net profit for the year – Drawings during the year. Therefore, Net profit for the year = Capital at 31 December – Capital at 1 January + Drawings during the year i.e. £26,000 – £25,000 + £16,000 = £17,000

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Accounting Multiple Choice Question – 21 February 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

On 1 January, a sole trader had capital of £25,000. During the year, he withdrew £17,000 for his own use and, at 31 December, he had capital of £31,000. If he did not introduce any new capital during the year, his net profit for the year was?

Select ONE answer:

  1. £17,000
  2. £23,000
  3. £29,000
  4. £32,000

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 2

  • As no capital has been introduced during the year, Capital at 31 December = Capital at 1 January + Net profit for the year – Drawings during the year. Therefore, Net profit for the year = Capital at 31 December – Capital at 1 January + Drawings during the year i.e. £31,000 – £25,000 + £17,000 = £23,000

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