Tag: Cash-Flow

Accounting Multiple Choice Question – 31 December 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 business can make a profit and yet have a decreased bank balance.

Which of the following might cause this to happen?

Select ONE answer:

  1. The sale of non-current assets at a loss
  2. The charging of depreciation in the statement of profit or loss
  3. The lengthening of the period of credit given to customers
  4. The lengthening of the period of credit taken 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 – 6 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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A cash budget indicates that a company will exceed its overdraft limit.

Which item should the company consider delaying?

Select ONE answer:

  1. capital expenditure
  2. extending the credit period allowed to debtors
  3. loan interest
  4. wages of employees

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

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

Accounting Multiple Choice Question – 1 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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At Alex Trading Ltd’s accounting year-end, the accountant Simon writes cheques to pay trade payables and records them in the books immediately.

The cheques are then deliberately retained by the accountant for two weeks.

What effect does this have on the year-end statement of financial position?

Select ONE answer:

  1. the accounts show a higher figure for cash
  2. the accounts show a lower figure for trade payables
  3. to improve Alex Trading Ltd’s cash flow
  4. to improve Alex Trading Ltd’s gearing

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
  3. Not correct
  4. Not correct

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

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

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

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.

apple devices books business coffee
Photo by Serpstat on Pexels.com

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

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