Tag: Accounting

Which of the following is an asset of a firm?

Select ONE answer:

1. Machinery owned by the firm.
2. Money owed by the firm to one of its suppliers in respect of goods purchased on credit.
3. An overdrawn balance on the firm’s bank account.
4. The capital of the firm.

State one other type of asset that a business might have:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1.because machinery is a resource from which benefits can be derived through use. 2 – Money owed by the firm to one of its suppliers is a liability. 3 – An overdrawn bank account is a liability. 4 – The capital of a firm is money owed by the business to the owners of the business.

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

Wood Elf Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £1.8M
• Inventory £2.7M
• Accounts Receivables £1.5M
• Bank Account £0.4M
• Cash £0.1M
• Accounts Payable £2.9M
• Long-term Bank Loan £4M
• Reserves  £1.5M
• Share Capital £1.0M
• Revenue  £25.8M
• Cost-of-Sales  £20.0M
• Net Profit Margin  £2.5M
• Purchases  £11.5M

What is Wood Elf’s Capital Gearing percentage ratio?

Select ONE answer:

1. 10.00
2. 26.32
3. 92.04
4. 36.5
5. 61.54

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

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

The answer is 5 – £4M / (£4M + £1.5M + £1.0M) * 100 = 61.54%

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

Wood Elf Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £1.8M
• Inventory £2.7M
• Accounts Receivables £1.5M
• Bank Account £0.4M
• Cash £0.1M
• Accounts Payable £2.9M
• Long-term Bank Loan £4M
• Reserves  £1.5M
• Share Capital £1.0M
• Revenue  £25.8M
• Cost-of-Sales  £20.0M
• Net Profit Margin  £2.5M
• Purchases  £11.5M

What is Wood Elf’s Trade Payable Days ratio?

Select ONE answer:

1. 10.00
2. 26.32
3. 92.04
4. 36.5
5. 61.54

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

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

The answer is 3 – £2.9M / £11.5M * 365 days = 92.04 days

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

Wood Elf Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £1.8M
• Inventory £2.7M
• Accounts Receivables £1.5M
• Bank Account £0.4M
• Cash £0.1M
• Accounts Payable £2.9M
• Long-term Bank Loan £4M
• Reserves  £1.5M
• Share Capital £1.0M
• Revenue  £25.8M
• Cost-of-Sales  £20.0M
• Net Profit Margin  £2.5M
• Purchases  £11.5M

What is Wood Elf’s Trade Receivable Days ratio?

Select ONE answer:

1. 7.41
2. 21.22
3. 1.62
4. 49.28
5. 0.67

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

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

The answer is 2 – £1.5M/ £25.8M * 365 days = 21.22 days

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

Wood Elf Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £1.8M
• Inventory £2.7M
• Accounts Receivables £1.5M
• Bank Account £0.4M
• Cash £0.1M
• Accounts Payable £2.9M
• Long-term Bank Loan £4M
• Reserves  £1.5M
• Share Capital £1.0M
• Revenue  £25.8M
• Cost-of-Sales  £20.0M
• Net Profit Margin  £2.5M
• Purchases  £11.5M

What is Wood Elf’s Rate of Inventory Turnover (times per year) ratio?

Select ONE answer:

1. 7.41
2. 21.22
3. 1.62
4. 49.28
5. 0.67

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

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

The answer is 1 – £20.0M / £2.7M = 7.41

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