Tag: Accounting

The following are extracts from the financial statements of a company for the two years ended 31 December 2019 and 2020.

What is the operating cash flow for the year ended 31 December 2020?

Select ONE answer:

1. £42,350
2. £43,050
3. £51,950
4. £61,650 

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 ==> £47,200 + £9,600 – (£32,990 – £30,000) – (£16,200 – £14,000) + (£10,340 – £10,000)
4. Not correct

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Which statement regarding the content of headings on a cash flow statement is correct? 

Select ONE answer:

1. Current asset investments are included under ‘management of liquid resources’.
2. ‘Financing’ includes interest payments to lenders.
3. Ordinary share dividends paid are included under ‘returns on investment and servicing finance’.
4. Proceeds from the sale of fixed assets are included under ‘financing’. 

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

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

A business has the following budgeted and actual results for a period. 

The fixed overheads are absorbed per unit.

What is the actual level of activity in units? 

Select ONE answer:

1. 118,000
2. 119,000
3. 120,000
4. 121,000

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 ==> (£354,000 / 118,000) = £3 per unit.  £360,000 – £3,000 = £357,000 / £3 = 119,000
3. Not correct
4. Not correct

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

A business provides the following data for the year.

What is the absorption cost per unit used for stocktaking? 

Select ONE answer:

1. £200
2. £250
3. £260
4. £325

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 ==> (£1,200,000 + £800,000) / 10,000
2. Not correct
3. Not correct
4. Not correct

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

A company sells two products, X and Y.

Which would increase the company’s profit by £10,000?

Select ONE answer:

1. a 30 % increase in the sales of X
2. a 50 % increase in the sales of both products
3. an increase in the selling price of X by £1 and Y by £6
4. a reduction in the variable costs of both products by £5

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 ==> (500 * £12) + (1,000 * £4)
3. Not correct
4. Not correct

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