Tag: Cambridge Assessment

Accounting Multiple Choice Question – 2 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 table shows the annual results of Alex Trading plc’s three departments:

Department   X   Y   Z

Sales   £200,000   £240,000   £320,000

less: variable costs   £130,000   £150,000   £100,000

headquarters fixed costs – apportioned   £80,000   £90,000   £130,000

Profit for the year(loss)   (£10,000)   NIL   £90,000

Headquarters fixed costs will not be reduced if any department is closed.

What should the company do, on the basis of these results?

Select ONE answer:

  1. close department X
  2. close department Y
  3. close departments X and Y
  4. keep all departments open

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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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.

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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

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Accounting Multiple Choice Question – 29 October 2023

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

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In the last year Alex Trading purchased inventory using cash for £11,680 and also purchased good for resale on credit for £32,485.

Trade payables were paid every 30 days.

What was the closing accounts payable balance?

Select ONE answer:

  1. £960
  2. £1,710
  3. £2,670
  4. £3,630

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 – 365 days / 30 days = 12.1667 == > £32,485 / 12.1667 = £2,670
  4. Not correct

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Accounting Multiple Choice Question – 27 October 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 accounting policy is not required to be disclosed in published company accounts?

Select ONE answer:

  1. basis of calculation of provision for doubtful debts
  2. basis of calculation of cost and net realisable value of stocks
  3. depreciation methods used
  4. treatment of goodwill

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 – 26 October 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 has issued £1M of 6% convertible debenture loans.

80% of holders converted at the rate of 48 ordinary shares of £0.25 each for each £100 of convertible debenture loans.

How many new ordinary shares were issued?

Select ONE answer:

  1. 384,000 shares
  2. 400,000 shares
  3. 480,000 shares
  4. 800,000 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 == > (£1,000,000 / £100) * 48 shares * 0.8
  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.