Tag: Cambridge Assessment

Accounting Multiple Choice Question – 21 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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What is a variable production cost for a manufacturer?

Select ONE answer:

  1. depreciation of equipment
  2. factory business rates
  3. purchases of raw materials
  4. storekeepers’ wages

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 – 20 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’s Income Statement showed a profit before interest of £128,000.

Interest paid was £8,000.

The table shows amounts included in the company’s SOFP:

  • Non-current assets £485,000
  • Net current assets £27,000
  • Liability amounts falling due after one year: Debentures £80,000

How much is the return on the total capital employed?

Select ONE answer:

  1. 20.3%
  2. 21.6%
  3. 23.4%
  4. 25.0%

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 == > £128k / (485 + 27 – 80 + 80) = 25%

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

Accounting Multiple Choice Question – 19 January 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

The following data is available for Alex plc:

Credit sales — > This Year £60,000  & Last Year £50,000

Credit purchases — > This Year £40,000  & Last Year £28,000

Trade receivables (average) — > This Year £12,000  & Last Year £8,000

Trade payables (average) — > This Year £10,000  & Last Year £16,000

Which statement is correct?

Select ONE answer:

  1. Trade receivables and trade payables days ratios have improved.
  2. Trade receivables and trade payables days ratios have worsened.
  3. Trade receivables are paying faster, but trade payables are being paid more slowly.
  4. Trade receivables are paying more slowly, but trade payables are being paid faster.

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

Accounting Multiple Choice Question – 18 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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Photo by Serpstat on Pexels.com

During the year ended 31 March 2016, Alex plc made sales of £560,000 of which 25% were for cash.

The trade receivables at 31 March 2015 were £52,000 and at 31 March 2016 they were £56,000.

What is the Trade Receivables Days collection period based on the average receivables of the two year-ends?

Select ONE answer:

  1. 34 days
  2. 35 days
  3. 47 days
  4. 49 days

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 = = > (52 + 56) / 2) = £54k average debtors / (£560k * 75%) * 365 days
  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 January 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

Alex plc has a current ratio of 1.75 : 1 and a liquid capital (quick / acid test) ratio of 1 : 1.

The business sells inventory on credit at its usual mark-up.

What is the effect of this on the current ratio and quick (acid test) ratio if they sell more goods to customers on the usual credit and price terms?

Select ONE answer:

  1. current ratio quick DECREASE & (acid test) ratio DECREASE
  2. current ratio quick DECREASE & (acid test) ratio INCREASE
  3. current ratio quick INCREASE & (acid test) ratio DECREASE
  4. current ratio quick INCREASE & (acid test) ratio 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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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