Tag: AQA

Alex Ltd rents its building to Lucy Ltd.

At 31 December 2019, Lucy Ltd owed £4,500 for rent, but at 31 December 2020 had paid £3,200 in advance.

During the year Alex Ltd had received £17,100 in rental from Lucy Ltd.

What is the rental income to be shown in Alex Ltd’s Profit and Loss Account for the year ended 31 December 2020?

Select ONE answer:

1. £9,400
2. £15,800
3. £18,400
4. £24,800 

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 ==> -£4,500 – £3,200 + £17,100
2. Not correct
3. Not correct
4. Not correct

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

The accounts of a business show: 

1  payments to suppliers

2  prepaid expenses

3  purchases

4  purchases returns

Which items will be debited to accounts in the purchases ledger?

Select ONE answer:

1. 1 and 2
2. 1 and 4
3. 2 and 3
4. 3 and 4 

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

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

The following information relates to a possible capital investment, costing £900,000.

The company has a cost of capital of 8%. 

Which statement about the project is correct? 

Select ONE answer:

1. It has an internal rate of return greater than the cost of capital.
2. It has an internal rate of return less than the cost of capital.
3. It will be viable if discounted at 9%.
4. It will be viable if the capital cost is increased to £1m.

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

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

Which cost is described by the following?

‘Costs which should be achieved under efficient conditions, but allowing for normal wastage’.

Select ONE answer:

1. basic standard
2. currently attainable standard
3. flexible standard
4. ideal standard

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

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

What is a flexible budget? 

Select ONE answer:

1. a budget based on expected level of production
2. a budget based on past performance but updated to take account of present conditions
3. a budget that reflects changes in activity levels
4. a budget that links fixed overheads to production

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.