Accounting Multiple Choice Question – 26 January 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 issued 100,000 10% preference shares of £1 each on 1 April 2015 at £1.20 per share.

Dividends on the shares are payable half-yearly on 1 April and 1 October.

How much will Alex plc show for preference dividends in its cash flow statement for the year ended 31 December 2015?

Select ONE answer:

  1. £5,000
  2. £6,000
  3. £7,500
  4. £10,000

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 = = > 100,000 shares * 0.1 = £10,000 divide by 2 as October only payment made in this year.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 25 January 2023

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

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Cash flow statements include the heading ‘Returns on investments and servicing of finance’.

Which item would NOT be shown under this heading?

Select ONE answer:

  1. dividends paid on ordinary shares
  2. dividends paid on preference shares
  3. interest paid on loans from the bank
  4. interest paid on debentures

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 – 24 January 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 department makes radios.

The production at the end of the month was 1000 units, of which 600 units were completed and 400 units were 50% complete.

production costs for the month

  • materials – £60,000
  • labour – £30,000
  • departmental overheads – £10,000

What is the cost per unit?

Select ONE answer:

  1. £100
  2. £112
  3. £125
  4. £150

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 == > (£60 + £30 + £10) / (600 + 400/2) = £125
  4. Not correct

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

Accounting Multiple Choice Question – 23 January 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 manufactures 175 units of a product a month.

The following total information is available for the month:

sales income – £580k
variable costs – £230k
fixed overheads – £90k

What is the break-even point in units?

Select ONE answer:

  1. 45 units
  2. 49 units
  3. 61 units
  4. 88 units

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 – 90,000 / ((580,000 – 230,000)/175)
  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 – 22 January 2023

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

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Existing fixed overheads are £100,000, unit selling price is £10 and unit variable costs are £5.

Fixed overheads are expected to increase by £20 000.

What is the new break-even sales volume?

Select ONE answer:

  1. 10 000 units
  2. 12 000 units
  3. 20 000 units
  4. 24 000 units

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 == > £100k + £20k / (£10 – £5) = 24,000 units

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

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