Tag: Cash-Flow Statements

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 – 26 August 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 extracts are taken from the financial statements of Alex plc for the year to 31 December 2021 & 2022.

  • operating profit before depreciation: 2021 £1,140k & 2022 £1,220k
  • depreciation for the year: 2021 £80k & 2022 £110k
  • Inventory: 2021 £55k & 2022 £68k
  • Receivables: 2021 £43k & 2022 £35k
  • Payables: 2021 £59k & 2022 £47K

What is the operating cash flow for year 2?

Select ONE answer:

  1. £1,203k
  2. £1,213k
  3. £1,237k
  4. £1,313k

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 – £1,220k + (55-68) + (43-35) + (59-47)
  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 – 25 August 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 information has been taken from Alex’s accounts for the year ended 31 December.

  • profit for the year – £70,600
  • depreciation – £20,100
  • loss on sale of non-current assets – £1,900
  • increase in working capital – £14,300

What is the net cash flow from operating activities?

Select ONE answer:

  1. £38,100
  2. £74,500
  3. £78,300
  4. £103,100

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 – £70,600 +£20,100 + £1,900 – £14,300
  4. Not correct

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

Accounting Multiple Choice Question – 2 July 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 amount shown on the cash flow statement of Alex plc for 2022 as taxation paid amounts to £96,000.

The extract of the Income Statement for Alex plc for 2022 and 2021 is as follows:

  • operating profit for the year – 2022 £350k and 2021 £336k
  • provision for taxation – 2022 (£110k) and 2021 (£104k)
  • profit after taxation – 2022 £240k and 2021 £232k

The liability for taxation at the 2021 year end was £100k.

What is the total tax provision disclosed in the statement of financial position of Alex plc for 2022?

Select ONE answer:

  1. £14,000
  2. £110,000
  3. £114,000
  4. £210,000

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 – £100k + £110k – £96k = = > £114k
  4. Not correct

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