Tag: Accounting

A company has an authorised capital of £1,000,000.

Which statement must be true?

Select ONE answer:

1. The company must issue £1,000,000 in shares
2. The company must not issue more than 1,000,000  shares
3. The shares issued must not exceed £1,000,000 
4. The shares and debentures must not exceed £1,000,000

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
4. Not correct

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

An extract from a company’s Balance Sheet is given below. 

What are the ordinary shareholders’ funds?

Select ONE answer:

1. £50,000
2. £54,000
3. £64,000
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 3

1. Not correct
2. Not correct
3. Correct – £50k + £10k + £4k
4. Not correct

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

Information about a business is given.

What is the prime cost?

Select ONE answer:

1. £69,000
2. £71,000
3. £92,000
4. £94,000

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 – (£3K + £35K – £2K) + £33K
2. Not correct
3. Not correct
4. Not correct

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

Which of the following will increase profit?

Select ONE answer:

1. increasing depreciation rates
2. increasing distributable reserves
3. increasing the provision for doubtful debts
4. increasing the value of closing stock and work-in-progress

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

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

Which of the following is a realised gain?

Select ONE answer:

1. a surplus on revaluation of trade investments to current market value
2. a surplus arising from a professional revaluation of the company office block
3. a surplus arising on the sale of patents
4. Goodwill arising on the purchase of another business

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

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