Tag: Bookkeeping

Accounting Multiple Choice Question – 26 August 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 following extracts are taken from the financial statements of Alex plc for the year to 31 December 2021 & 2022.

  • operating profit before depreciation: 2021 £1,140k & 2022 £1,220k
  • depreciation for the year: 2021 £80k & 2022 £110k
  • Inventory: 2021 £55k & 2022 £68k
  • Receivables: 2021 £43k & 2022 £35k
  • Payables: 2021 £59k & 2022 £47K

What is the operating cash flow for year 2?

Select ONE answer:

  1. £1,203k
  2. £1,213k
  3. £1,237k
  4. £1,313k

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 – £1,220k + (55-68) + (43-35) + (59-47)
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 25 August 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 following information has been taken from Alex’s accounts for the year ended 31 December.

  • profit for the year – £70,600
  • depreciation – £20,100
  • loss on sale of non-current assets – £1,900
  • increase in working capital – £14,300

What is the net cash flow from operating activities?

Select ONE answer:

  1. £38,100
  2. £74,500
  3. £78,300
  4. £103,100

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 – £70,600 +£20,100 + £1,900 – £14,300
  4. Not correct

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

Accounting Multiple Choice Question – 18 August 2023

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

The following information has been taken from a recent statement of financial position of Alex ltd:

  • non-current assets – £150,000
  • Capital – £170,000
  • current liabilities – £5,000

What is the current ratio?

Select ONE answer:

  1. 3 : 1
  2. 4 : 1
  3. 5 : 1
  4. 6 : 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 – NCA + CA – CL = C == > £170k – (£150k – £5k) = £25k == > £25k / £5k = 5 : 1
  4. Not correct

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

Accounting Multiple Choice Question – 17 August 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 might cause working capital / net current assets to fall?

Select ONE answer:

  1. an amount owing by a customer has turned out to be a bad debt
  2. an old delivery van has been given in full exchange for a new computer
  3. a payment of cash has been made to a trade payable
  4. new inventory has been purchased on credit

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 – 16 August 2023

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

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Which of the following correctly shows the effect of a company increasing the value of its freehold property?

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 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.