Tag: AQA

Business Studies Multiple Choice Question – 14 April 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Andrea Piacquadio on Pexels.com

UK fashion T-shirt manufacturer Stafford Fashions Ltd needs a new machine costing £125 000 to cut fabric for its T-shirt production lines.

Which one of the following would be the MOST appropriate source of finance?

Select ONE answer:

  1. Trade credit
  2. Overdraft
  3. Leasing
  4. Debenture

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 – trade credit is normally designed for purchase of raw materials such as fabrics from suppliers rather than large items of capital equipment, such as a new machine.
  2. Not correct – overdrafts are usually given to help cash flow problems in the short term not for long term purchases of assets.
  3. Correct – leasing, allows a company to rent/without owning an asset. Leasing is the most suitable for SF Ltd because they will have the use of the cutting machine immediately. Therefore SF Ltd will not have to find, borrow or pay out the full £125k before starting to earn revenue and potentially profits from its operation.
  4. Not correct – debentures offer longer term finance usually to develop much larger capital projects, which is not what is required to purchase a piece of equipment costing £125 000.

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

Accounting Multiple Choice Question – 26 March 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

Which statements describe the advantages to a business of using a budgetary control system?

  1. Budget holders are accountable for controllable costs.
  2. Costs are controlled by comparing their actual and budgeted levels.
  3. The budget holders’ performance is measured on the quality of their output.

Select ONE answer:

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

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

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

Accounting Multiple Choice Question – 25 March 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

A company has fixed costs of £8,000, which will only increase when production exceeds 40,000 units.

It makes and sells 20,000 units of a single product.

Each unit has a selling price of £10 and has a contribution to sales ratio of 40%.

By how much does the profit increase if it makes and sells 30,000 units?

Select ONE answer:

  1. £32,000
  2. £40,000
  3. £92,000
  4. £120,000

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 – £10 @ 40% = £4 * 10,000 units ===> £40,000
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 24 March 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

A business provided the following information per unit about a product.

  • selling price – £20.00
  • variable cost – £12.50
  • fixed cost – £3.50

What is the contribution to sales ratio?

Select ONE answer:

  1. 20%
  2. 37.5%
  3. 62.5%
  4. 80%

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 – £20 – £12.50 = £7.5 / £20 ==> 37.5%
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 23 March 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

A manufacturer has limited labour hours available to produce three types of products.

Which factor should be considered in order to maximise the profit?

Select ONE answer:

  1. break-even of each product
  2. profit per unit of each product
  3. contribution per unit of each product
  4. contribution per labour hour of each product

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

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