Tag: Directors

Accounting Multiple Choice Question – 2 October 2024

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

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Which ONE of the following would be classified as current liabilities in the statement of financial position of a sole trader?

Select ONE answer:

  1. Owner’s capital
  2. Income tax payable
  3. Drawings
  4. Bank overdraft

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 – Income Tax Payable does not feature on a Sole Trader’s statement of financial position

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Accounting Multiple Choice Question – 30 September 2024

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

Lucy’s net assets have increased by £127,000 over the year.

She took drawings of £47,000 and paid in to the business the proceeds of a personal life insurance policy amounting to £25,000.

Her net profit for the year was?

Select ONE answer:

  1. £815
  2. £810
  3. £825
  4. £820

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 – There are only (25 – 10 + 10 – 10) = 15 units in stock at the end of January. 10 of these are valued at £55, and the remainder at £54: (10 × £55) + ( 5 × £54) = £820

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Accounting Multiple Choice Question – 20 September 2024

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

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At the end of its first year of trading on 30 June 2021 Alex Ltd’s net assets are £207,594.

It has share capital of £50,000 made up of 25p equity shares issued at 40p each, and a retained profits reserve of £107,594.

In relation to Alex Ltd’s balance sheet as at 30 June 2021 which of the following be true?

Select ONE answer:

  1. It has a general reserve of £50,000
  2. It has share premium of £100,000
  3. It has a general reserve of £20,000
  4. It has share premium of £50,000

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 == > Share capital + Share Premium of £30K + profit reserve + General Reserve (Balance Number) = Closing position
  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 September 2024

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

Alex Ltd issues 250,000 equity shares with a nominal value of £2 each at a price of £3.55 each for cash.

Which of the following sets of entries would be made to record this transaction?

Select ONE answer:

  1. Credit Bank £887,500, Debit Share capital £500,000, Debit Share premium £387,500
  2. Debit Bank £887,500, Credit Share capital £250,000, Credit Share premium £637,500
  3. Debit Bank £887,500, Credit Share capital £500,000, Credit Share premium £387,500
  4. Credit Bank £887,500, Debit Share capital £250,000, Debit Share premium £637,500

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 == > Cash raised is 250,000 x £3.55 = £887,500, which is debited to cash at bank. The credit to share capital is 250,000 x £2 = £500,000, while the credit share premium is250,000 x £1.55 = £387,500
  4. Not correct

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Accounting Multiple Choice Question – 16 September 2024

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 Ltd uses the first-in, first-out (FIFO) method to value its stocks of finished goods.

As at 1 January there were stocks of 25 units that had cost £54 each.

During January, the following transactions occurred:

8 January – 10 units were sold for £62 each
15 January – 10 units were purchased for £55 each
22 January – 10 units were sold for £62 each

What was the value of Alex Ltd’s closing stock as at 13 January?

Select ONE answer:

  1. £815
  2. £810
  3. £825
  4. £820

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 – There are only (25 – 10 + 10 – 10) = 15 units in stock at the end of January. 10 of these are valued at £55, and the remainder at £54: (10 × £55) + ( 5 × £54) = £820

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