Accounting Multiple Choice Question – 3 November 2022

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

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A company can only invest £1 million in the current period.

  • project 1 – capital requirement (current period) £1.2m with an NPV of £5m
  • project 2 – capital requirement (current period) £1.0m with an NPV of £2.5m
  • project 3 – capital requirement (current period) £0.6m with an NPV of £1.5m
  • project 4 – capital requirement (current period) £0.4m with an NPV of £1.2m
  • project 5 – capital requirement (current period) £0.4m with an NPV of £1.0m

Which project(s) should the company undertake to maximise its shareholders’ wealth?

Select ONE answer:

  1. 1
  2. 2
  3. 3 and 5
  4. 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 4

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

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Accounting Multiple Choice Question – 2 November 2022

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

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Which Investment Appraisal technique includes depreciation in the calculation?

Select ONE answer:

  1. accounting rate of return
  2. internal rate of return
  3. net present value
  4. payback

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

Accounting Multiple Choice Question – 1 November 2022

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

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During the year a company produces 10,000 units.

The cost data relating to the production is shown below.

  • direct materials – actual cost £22,000 & total variance (£2,000) A
  • direct labour – actual cost £32,000 & total variance £4,000 F

What was the standard prime cost per unit?

Select ONE answer:

  1. £5.20
  2. £5.40
  3. £5.60
  4. £6.00

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 – £22k – £2k + £32k + £4K / 10,000
  4. Not correct

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

Accounting Multiple Choice Question – 31 October 2022

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

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The shaded area in the diagram represents the standard material cost for a 2000 unit manufacturing run of Product X.

The larger box represents the total material cost.

Which statement is true?

Select ONE answer:

  1. material price variance – Adverse & material usage variance – Adverse
  2. material price variance – Adverse & material usage variance – Favourable
  3. material price variance – Favourable & material usage variance – Adverse
  4. material price variance – Favourable & material usage variance – 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 1

  1. Correct
  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.

Accounting Multiple Choice Question – 30 October 2022

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

Which statement best describes the objectives of standard costing?

Select ONE answer:

  1. It assists in budget preparation.
  2. It improves control on a ‘management by exception’ basis.
  3. It provides a prediction of future costs.
  4. All of the above.

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

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

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