Tag: Bookkeeping

Accounting Multiple Choice Question – 7 November 2023

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

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The information below shows the annual budget for Alex Trading Ltd for production of 12,000 units of product A:

  • direct materials £30,000 
  • direct labour £25,000 
  • variable overheads £17,000 
  • fixed costs £60,000
  • total cost £132,000 

The actual production of product A is 15,000 units and Alex Trading Ltd decides to flex its budget. 

What is the revised total budgeted cost for product A?

Select ONE answer:

  1. £145,750
  2. £150,000
  3. £156,000
  4. £165,000

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 – £132k – £60k) * 15 / 12 = £90k + £60k
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 6 November 2023

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

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A cash budget indicates that a company will exceed its overdraft limit.

Which item should the company consider delaying?

Select ONE answer:

  1. capital expenditure
  2. extending the credit period allowed to debtors
  3. loan interest
  4. wages of employees

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

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

Accounting Multiple Choice Question – 1 November 2023

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

Photo by Olya Kobruseva on Pexels.com

At Alex Trading Ltd’s accounting year-end, the accountant Simon writes cheques to pay trade payables and records them in the books immediately.

The cheques are then deliberately retained by the accountant for two weeks.

What effect does this have on the year-end statement of financial position?

Select ONE answer:

  1. the accounts show a higher figure for cash
  2. the accounts show a lower figure for trade payables
  3. to improve Alex Trading Ltd’s cash flow
  4. to improve Alex Trading Ltd’s gearing

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

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

Accounting Multiple Choice Question – 31 October 2023

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

Photo by Olya Kobruseva on Pexels.com

Alex Trading plc has 500,000 ordinary shares in issue and the following reserves.

  • share premium – £20,000
  • revaluation reserve – £50,000
  • general reserve – £80,000
  • retained earnings – £40,000

What is the maximum dividend per share?

Select ONE answer:

  1. £0.08
  2. £0.24
  3. £0.34
  4. £0.38

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 – £80k + £40k / 500k
  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 – 30 October 2023

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

Photo by Pixabay on Pexels.com

The issued share capital of Alex Trading plc is as follows:

  • 400,000 4 % preference shares of £1.00 each fully paid
  • 1,600,000 ordinary shares of £0.50 each fully paid
  • The company’s profit for the year after interest and tax is £128,000

An appropriate dividend cover for the ordinary share is 2.0 times.

What will be the dividend per ordinary share?

Select ONE answer:

  1. £0.035
  2. £0.040
  3. £0.070
  4. £0.080

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 = £128,000 – (£0.4M * 0.04) = £112k / 2 = £56k / 1,600 k shares = £0.035
  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.