Tag: Cambridge Assessment

Accounting Multiple Choice Question – 15 February 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 would be the reason for an adverse material usage variance?

Select ONE answer:

  1. Production has been at a lower level than budgeted.
  2. The company has paid its suppliers more for the material than planned.
  3. The material has been used inefficiently in the factory.
  4. There has been difficulty in obtaining the material from suppliers.

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 – 14 February 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 cash budget of Alex Limited for the next six months shows a cash deficiency of £30,000 arising at the end of the period.

Which possible remedy will overcome the deficiency?

Select ONE answer:

  1. a rights issue to existing ordinary shareholders; the issue’s net proceeds will be £35,000
  2. cancelling a planned depreciation charge of £38,000
  3. delaying for one year a bonus issue to existing ordinary shareholders
  4. the inclusion of the company’s freehold property in the accounts at its current valuation of £200,000 instead of cost of £128,000

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
  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 – 13 February 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 data relates to two different levels of output in a Alex plc’s finishing department:

  • machine hours – Level 1 – 16 000 & Level 2 – 20 000
  • Overheads – Level 1 £214,000 & Level 2 – £230,000

What is the amount of fixed overheads?

Select ONE answer:

  1. £16,000
  2. £64,000
  3. £150,000
  4. £198,000

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 – 20,000 – 16,000 = 4,000 == > £230k – £214K = £16k / 4,000 = £4 per hour. 16,000 * 4 = £64k == > Therefore £214k – £64k variable overheads = £150k fixed overheads
  4. Not correct

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

Accounting Multiple Choice Question – 12 February 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 contains information for the two products X & Y of Alex plc:

  • contribution per unit – X £12 & Y £9
  • machine hours required per unit – X 6 hours & Y 3 hours
  • estimated sales demand – X 200 units & Y 200 units
  • required machine hours – X 1,200 hours & Y 600 hours
  • Factory machine capacity limited to – 1,200 hours

What is the maximum possible contribution?

Select ONE answer:

  1. £2,100
  2. £3,000
  3. £3,300
  4. £4,200

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- £9 * 200 units of Y = £1,800 for 600 hours, and balance is 100 units of X at £12 per unit for £1,200
  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 – 11 February 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

Alex plc issues a 5-year debenture bond of £1M

Interest for years 1 and 2 will be at the rate of 10% per annum, and for years 3, 4 and 5 it will be 12% per annum.

What will be the charge for interest shown in its Income Statement each year?

Select ONE answer:

  1. £100k p.a.
  2. £100k in Years 1 and 2, and £120k in Years 3, 4 and 5
  3. £112k p.a
  4. £120k p.a.

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

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