Tag: Accounting

Accounting Multiple Choice Question – 2 June 2023

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

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When preparing a sole trader’s annual accounts, no adjustments were made for prepayments at the end of the year.

What is the effect of these omissions?

Select ONE answer:

  1. net profit overstated & creditors understated
  2. net profit understated & creditors understated
  3. current assets overstated & owner’s capital overstated
  4. current assets understated & owner’s capital understated

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 – 1 June 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 Stafford Accounting club’s income and expenditure (income statement) account for 2022 showed rent and rates as being £4,000.

On 31 December it was noted that rent owing by the club was £600 and rates paid in advance by the club was £800.

What was the amount shown in the receipts and payments account in the cash book for the Stafford Accounting club for rent and rates for the year ended 31 December 2022?

Select ONE answer:

  1. £3,800
  2. £4,000
  3. £4,200
  4. £5,400

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 – £4K – £600 + £800
  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 April 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

What is the net present value of an investment equal to when the internal rate of return is calculated?

Select ONE answer:

  1. the aggregate anticipated future cash income at compound interest
  2. the initial expenditure on the investment
  3. the resale value of the asset on completion of the project
  4. zero

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

Accounting Multiple Choice Question – 11 April 2023

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

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What does this formula show?

  •   Average annual profit / Average investment

Select ONE answer:

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

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 – 10 April 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 company has a standard labour cost for one unit of 8 hours of direct labour at £6 per hour.

In a given period 540 units were produced in 4,300 hours at a total direct labour cost of £26,660.

What is the labour efficiency variance for the period?

Select ONE answer:

  1. £120 adverse
  2. £120 favourable
  3. £860 adverse
  4. £860 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 2

  1. Not correct
  2. Correct – 540 units * 8 hours = 4,320 hours – 4,300 actual hours so 20 hours * £6 = £120 favourable
  3. Not correct
  4. Not correct

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