Tag: Bookkeeping

Accounting Multiple Choice Question – 10 September 2023

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

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What is NOT a source of long-term finance?

Select ONE answer:

  1. bank overdraft
  2. debentures
  3. ordinary shares
  4. preference shares

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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Accounting Multiple Choice Question – 9 September 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 company wishes to present its financial statements in the most favourable light.

What will achieve this?

Select ONE answer:

  1. first-in first-out stock valuation
  2. provision for bad debts
  3. revaluation of fixed assets
  4. window dressing

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

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

Accounting Multiple Choice Question – 8 September 2023

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

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Alex plc annual results are shown below:

  • profit for the year – £215,000
  • preference dividends – £15,000
  • ordinary dividends – interim paid – £25,000
  • ordinary dividends – final approved – £75,000
  • retained profit for the year – £100,000

The final ordinary dividend has been approved by the shareholders, but for financial reasons will only be paid after one year.

What are the ‘earnings’ to be included in the earnings per share calculation?

Select ONE answer:

  1. 100,000
  2. 175,000
  3. 200,000
  4. 215,000

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: £215k – £15k
  4. Not correct

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

Accounting Multiple Choice Question – 7 September 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

Alex Trading plc wishes to reduce its gearing.

Select ONE answer:

  1. a bonus issue of ordinary shares
  2. an issue of debentures
  3. an issue of convertible loan stock
  4. a rights issue of ordinary shares

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.

Accounting Multiple Choice Question – 6 September 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

Which of the following shows the effect of Alex plc raising a loan to buy non-current assets?

Select ONE answer:

  1. Asset Use Ratio – Decrease AND Gearing – Decrease
  2. Asset Use Ratio – Decrease AND Gearing – Increase
  3. Asset Use Ratio – Increase AND Gearing – Decrease
  4. Asset Use Ratio – Increase AND Gearing – Increase

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.