Tag: Cash-Flow

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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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

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

Accounting Multiple Choice Question – 1 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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In a cash flow statement, which item is a cash outflow?

Select ONE answer:

  1. a decrease in stock
  2. a decrease in trade debtors
  3. a decrease in trade creditors
  4. an issue of bonus shares

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.