Tag: ACA

Accounting Multiple Choice Question – 25 December 2023

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

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Information about a business’s financial position is primarily provided in which financial statement?

Select ONE answer:

  1. The statement of profit or loss
  2. The statement of financial position
  3. The statement of equity and retained earnings
  4. The statement of cash flows

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

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Accounting Multiple Choice Question – 24 December 2023

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

Photo by Olya Kobruseva on Pexels.com

A loan due for repayment in 20 months’ time has been included as a current liability.

What will be the effect when this is corrected?

Select ONE answer:

  1. increase net assets
  2. increase net current assets
  3. no effect on net current assets
  4. reduce net current assets

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

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

Accounting Multiple Choice Question – 23 December 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

Alex Trading hopes to make £25,000 of profit next year.

One product is made: the Stafford garden shed.

Each Stafford shed is sold for £590 and has a variable cost of £240.

Monthly fixed costs are £4,275.

How many Stafford sheds does Alex Trading need to make next year and sell to achieve the target profit of £25,000?

Select ONE answer:

  1. 147 sheds
  2. 72 sheds
  3. 84 sheds
  4. 218 sheds

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 – The formula used to calculate the number of units required to achieve a target profit is — > Number of units = (annual fixed costs + target profit) / contribution per unit == > Contribution per unit = 590 – 240 = £350 per unit == > Annual fixed costs = 12 x £4,275 = £51,300 == > Number of units = (51,300 + 25,000) / 350 = 218 sheds

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

Accounting Multiple Choice Question – 21 December 2023

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

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Alex Manufacturing Ltd has made 1,800 calculators in one month.

Each calculator had a variable cost of £5.40 and a selling price of £11.

The fixed costs for the month were £8,000.

How much contribution did Alex Manufacturing Ltd make in the month?

Select ONE answer:

  1. £10,080
  2. £19,800
  3. £2,080
  4. £1,720

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 – Contribution per unit = selling price per unit – variable cost per unit = 11.00 – 5.40 = £5.60 per unit. Total contribution = number of units x contribution per unit = 1,800 x £5.60 = £10,080
  2. Not correct
  3. Not correct
  4. Not correct

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