Accounting Multiple Choice Question – 28 January 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 plc has the following capital structure:

  • 50,000 ordinary £10 shares – £500,000
  • 1,000,000 5% convertible loan stock – £1,000,000

One half of the loan stock holders converted at the rate of three new ordinary shares of £10 each per £100 of loan stock.

How many new ordinary shares were issued?

Select ONE answer:

  1. 15,000
  2. 150,000
  3. 200,000
  4. 300,000

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

  1. Correct = = > 500,000 convertible loan stock / 100 = 5,000 * 3 = 15,000
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 27 January 2023

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

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The table shows Alex plc’s Statement Of Financial Position.

Non-current assets – £60,000
Current assets – £10,000
Total – £70,000

Issued share capital £100,000
Profit & Loss Account (£30 000)
Total – £70,000

Alex plc has decided to do the following:

  • The issued shares of £0.50 each are to be reduced to shares of £0.25 each.
  • The non-current assets are to be revalued at £40,000.
  • The Profit and Loss balance is to be written off.

What will be the total of non-current and current assets?

Select ONE answer:

  1. £20,000
  2. £50 000
  3. £70,000
  4. £80,000

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

  1. Not correct
  2. Correct = = > Dr P&L £20K Cr NCA £20k & then Dr Issued Share Capital £50k Cr P&L £50k
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 26 January 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 plc issued 100,000 10% preference shares of £1 each on 1 April 2015 at £1.20 per share.

Dividends on the shares are payable half-yearly on 1 April and 1 October.

How much will Alex plc show for preference dividends in its cash flow statement for the year ended 31 December 2015?

Select ONE answer:

  1. £5,000
  2. £6,000
  3. £7,500
  4. £10,000

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

  1. Correct = = > 100,000 shares * 0.1 = £10,000 divide by 2 as October only payment made in this year.
  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 – 25 January 2023

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

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Cash flow statements include the heading ‘Returns on investments and servicing of finance’.

Which item would NOT be shown under this heading?

Select ONE answer:

  1. dividends paid on ordinary shares
  2. dividends paid on preference shares
  3. interest paid on loans from the bank
  4. interest paid on debentures

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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Accounting Multiple Choice Question – 24 January 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 department makes radios.

The production at the end of the month was 1000 units, of which 600 units were completed and 400 units were 50% complete.

production costs for the month

  • materials – £60,000
  • labour – £30,000
  • departmental overheads – £10,000

What is the cost per unit?

Select ONE answer:

  1. £100
  2. £112
  3. £125
  4. £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 == > (£60 + £30 + £10) / (600 + 400/2) = £125
  4. Not correct

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

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