Tag: Accounting

Accounting Multiple Choice Question – 14 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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Which of these items must be disclosed, according to company law, in the notes to a Company’s published Profit and Loss Account?

Select ONE answer:

  1. a review of the company’s activities for the year
  2. the remuneration of the auditors
  3. exceptional items
  4. details of research and development activities undertaken

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 – 13 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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Which item is not required in the Report of Directors of a limited company?

Select ONE answer:

  1. details of export sales
  2. future developments for the business
  3. the names of the directors
  4. the proposed dividend details

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 – 12 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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A company’s year end is 30 June 2015.

The following events took place after the year-end:

  • On 27 July 2015 a major fire took place at the company’s factory.
  • On 8 August 2015 a major trade receivable at 30 June 2015 went into liquidation.

In accordance with SSAP 17, Accounting for post balance sheet events, how should the two events be treated in the financial statements?

Select ONE answer:

  1. fire – accrued in accounts & trade receivable liquidation – accrued in accounts
  2. fire – accrued in accounts & trade receivable liquidation – disclosed in notes
  3. fire – disclosed in notes & trade receivable liquidation – accrued in accounts
  4. fire – disclosed in notes & trade receivable liquidation – disclosed in notes

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

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

Accounting Multiple Choice Question – 11 October 2022

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

apple devices books business coffee
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A business is sold to a limited company.

The net assets acquired have a total book value of £90,000 and are valued at £100,000.

Goodwill is valued at £30,000.

The purchase price is settled by an issue of ordinary £1.00 shares, valued at £1.25 each.

How many shares are issued?

Select ONE answer:

  1. 80,000
  2. 96,000
  3. 104,000
  4. 130,000

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 3

  1. Not correct
  2. Not correct
  3. Correct = £100,000 + £30,000 = £130,000 / £1.25 = = > 104,000 shares
  4. Not correct

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

Accounting Multiple Choice Question – 10 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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Lucy Ltd has the following balance sheet summary:

  • Fixed assets at net book value – £120,000
  • Net current assets – £30,000
  • Total Assets – £150,000
  • Financed by capital and reserves – £150,000

The fixed assets are then revalued at £180,000, and the net current assets at £20,000. The business is finally acquired for £225,000.

What is the payment for Goodwill?

Select ONE answer:

  1. £25,000
  2. £45,000
  3. £75,000
  4. £105,000

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 = £225,000 – £180,000 – £20,000 = – > £25,000
  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.