Tag: Cambridge Assessment

Accounting Multiple Choice Question – 23 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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Extracts from the statement of financial position of Alex Trading plc show:

                                                                            
             at 30 September year 2022       at 30 September year 2023

net assets £16,000 £24,000

financed by:

issued share capital £10,000 £15,000
share premium account NIL £2,500
revaluation reserve £500 £800
retained earnings £3,500 £4,200
debentures £2,000 £1,500

                                                                            £16,000                                         £24,000

What is the net cash movement from ‘Financing’ for the year ended 30 September 2023?

Select ONE answer:

  1. £7,000
  2. £7,300
  3. £7,500
  4. £8,000

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 1

  1. Correct == > £15,000k – £10,000k + £2,500 + (£1,500 – £2,000)
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 22 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 heading in a company’s cash flow statement would include an investment of surplus funds for six months?

Select ONE answer:

  1. capital expenditure and financial investment
  2. financing
  3. management of liquid resources
  4. returns on investment and servicing of finance

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
  4. Not correct

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Accounting Multiple Choice Question – 21 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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Alex Manufacturing Ltd manufactures one product.

Variable costs are £600k. Fixed costs are £300k.

If Alex Manufacturing Ltd bought the product from another supplier, it could use existing machinery to make a total contribution of £400k. Fixed costs would not change.

What is the maximum price it should pay to obtain the product from another supplier?

Select ONE answer:

  1. £600k
  2. £700k
  3. £900k
  4. £1,000k

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 – £600k + £400k

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Accounting Multiple Choice Question – 20 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 following financial data applies to Alex Trading Ltd.

  • budgeted labour hours – 10,000 hours
  • actual labour hours – 9,500 hours
  • budgeted overheads – £150,000
  • actual overheads – £160,000

What is the amount of overhead under-absorbed?

Select ONE answer:

  1. £7,500
  2. £8,000
  3. £10,000
  4. £17,500

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 – £150,000 / 10,000 = £15 * 500 = £7,500 + £10,000 extra overhead

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

Accounting Multiple Choice Question – 19 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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Alex Trading Ltd provides the following data for the year:

  • budgeted output (units) – 10,000 units
  • actual output (units) – 8,000 units
  • budgeted fixed production costs – £1,200,000
  • budgeted variable production costs – £800,000
  • budgeted fixed selling overhead – £600,000

What is the absorption cost per unit used for stocktaking?

Select ONE answer:

  1. £200
  2. £250
  3. £260
  4. £325

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 == > £1,200k + £800k / 10,000 units
  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.