Tag: AQA

A business uses job costing to calculate the cost of vehicle repair jobs. 

Overheads are allocated on an absorption costing basis.

What is the effect of this method of allocation?

Select ONE answer:

1. overheads will include both fixed and variable overhead costs
2. overheads will include direct costs only
3. overheads will include fixed overhead costs only
4. overheads will include variable overhead costs 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

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

A company wishes to improve its current ratio and its acid test ratio. 

How can this be done?

Select ONE answer:

1. increasing discounts to debtors
2. increasing the provision for doubtful debts
3. purchasing additional stock on credit
4. selling fixed assets

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

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

The opening stock of a business is £10,000 and the cost of goods sold is £200,000.

Using the average figure of opening and closing stock, what value of closing stock is needed to give a stock turnover of 10?

Select ONE answer:

1. £10,000
2. £20,000
3. £30,000
4. £40,000

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 3

1. Not correct
2. Not correct
3. Correct – (186 / 24) * 365
4. Not correct

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

The following information is available for a business.

What is the creditors’ payment period?

Select ONE answer:

1. 40 days
2. 43 days
3. 47 days
4. 54 days

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 – (186 / 24) * 365
4. Not correct

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

The following items are included in the Balance Sheet of a business.

What is the quick (acid test) ratio?

Select ONE answer:

1. 1.1 : 1
2. 1.2 : 1
3. 1.7 : 1
4. 2.4 : 1

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 — (£126 + £21) / £87
4. Not correct

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