Tag: ACA

Accounting Multiple Choice Question – 14 November 2023

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

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A vehicle cost £30,000. 

The vehicle was later sold for £9,000 and the profit on disposal was £1,500.

What was the accumulated depreciation of the vehicle on disposal?

Select ONE answer:

  1. £7,500
  2. £9,000
  3. £21,000
  4. £22,500

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 – £30k – (£9k – £1.5k) = £22.5k

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Accounting Multiple Choice Question – 13 November 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 Trading plc has £5M to invest and has identified the following the following five projects:

  • project number 1 — £5M capital required — £1.4M NPV of project
  • project number 2 — £4M capital required — £1.2M NPV of project
  • project number 3 — £3M capital required — £1.0M NPV of project
  • project number 4 — £2M capital required — £0.8M NPV of project
  • project number 5 — £1M capital required — £0.5M NPV of project

Which projects should Alex Trading plc select?

Select ONE answer:

  1. Project 1 Only
  2. Project 2 and 5
  3. Project 2 and 4
  4. Project 3 and 5

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

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

Accounting Multiple Choice Question – 12 November 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 Trading Ltd is evaluating whether to invest in a project.

The table shows estimates for the project with a discount factor (8%)

initial investment
year 0 – £58,500 == > DCF 1.000

projected cash flows
year 1 – £37,300 == > DCF 0.926
year 2 – £21,200 == > DCF 0.857
year 3 – £19,500 == > DCF 0.794

What is the net present value (NPV) of the project to Alex Trading Ltd?

Select ONE answer:

  1. -£19,500
  2. -£9,691
  3. +£9,691
  4. +£19,500

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 – Minus £58,500 + (£37,300 * 0.926) + (£21,200 * 0.857) + (£19,500 * 0.794)
  4. Not correct

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Accounting Multiple Choice Question – 11 November 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 Trading Ltd invests in a project which cost £210,000.

The project will yield annual cash flows of £90,000 for each of the next three years.

After providing annual depreciation of £10,000 the project will yield an annual profit of £80,000.

What is the payback period, assuming profits and depreciation arise at the year-end?

Select ONE answer:

  1. 2.33 years
  2. 2.50 years
  3. 2.62 years
  4. 3 years

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 – £210k – £90k – £90k – £30k / £90k == > 2 1/3 years
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 10 November 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

Budgeted and actual sales of a product sold by Alex Trading Ltd are given.

  • sales in units: budget 2,000 and actual 1,800
  • selling price per unit: budget £15 and actual £?
  • sales revenue: budget £30,000 and actual £28,800

What is the sales price variance?

Select ONE answer:

  1. £1,200 adverse
  2. £1,200 favourable
  3. £1,800 adverse
  4. £1,800 favourable

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 – Actual price – Standard price * Actual quantity == > £28,800 / 1,800 = £16 == > £15 – £16 * 1,800 = £1,800 FAV

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