Tag: Accounting

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

• Long-Term Assets £300k
• Inventory £85k
• Accounts Receivables £40k
• Bank Account £10k
• Cash £5K
• Accounts Payable £65k
• Long-term Bank Loan £700k
• Reserves £125k
• Share Capital £100kRevenue £3,800k
• Cost-of-Sales £2,400k
• Net Profit Margin £300k
• Purchases £1,200k

 

What is Woodpecker’s Expenses in relation to revenue Percentage?

Select ONE answer:

1. 34.86
2. 36.84
3. 7.89
4. 58.33
5. 28.95

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 5 – £3,800k – £2,400k = £1,400k – £300k = £1,100k / £3,800k * 100 = 28.95%

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

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

• Long-Term Assets £300k
• Inventory £85k
• Accounts Receivables £40k
• Bank Account £10k
• Cash £5K
• Accounts Payable £65k
• Long-term Bank Loan £700k
• Reserves £125k
• Share Capital £100kRevenue £3,800k
• Cost-of-Sales £2,400k
• Net Profit Margin £300k
• Purchases £1,200k

What is Woodpecker’s Gross Profit Mark-up Percentage?

Select ONE answer:

1. 34.86
2. 36.84
3. 7.89
4. 58.33
5. 12.87

Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – £3,800 – £2,400k = £1,400k / £2,400k * 100 = 58.33%

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

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

• Long-Term Assets £300k
• Inventory £85k
• Accounts Receivables £40k
• Bank Account £10k
• Cash £5K
• Accounts Payable £65k
• Long-term Bank Loan £700k
• Reserves £125k
• Share Capital £100kRevenue £3,800k
• Cost-of-Sales £2,400k
• Net Profit Margin £300k
• Purchases £1,200k

What is Woodpecker’s Gross Profit Margin Percentage?

Select ONE answer:

1. 34.86
2. 36.84
3. 7.89
4. 58.33
5. 12.87

Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – £3,800k – £2,400k = £1,400k / £3,800k * 100 = 36.84%

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

The following information is available for Product Z.

What would be the difference between the profit for the month using absorption costing and the profit for the month using marginal costing?

Select ONE answer:

1. Absorption costing profit would be £500 lower
2. Absorption costing profit would be £1,500 higher
3. Absorption costing profit would be £1,500 lower
4. Absorption costing profit would be £3,000 higher
5. Absorption costing profit would be £3,000 lower

Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – There has been an increase of 50 units in inventory. Each one has absorbed £30 of overhead (£5*6 hours) which means that £1,500 of extra profit in the month will have been generated by an increase in current assets.

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

The following information is available for the single product manufactured by a business.

How many units must the business sell to produce an annual profit of £80 000?

Select ONE answer:

1. 7,477 units
2. 14,036 units
3. 15,888 units
4. 29,825 units
5. 38,555 units

Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – The contribution per unit is £10.70. If you multiply it by 15,888 units the contribution is £170,001.60 which if you take away the £90,000 of fixed costs leaves you with an annual profit of £80,000. The budgeted production information is a distraction.

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