Tag: Financial Accounting

What is not required to be disclosed in the published company accounts?

Select ONE answer:

1. auditors’ remuneration
2. depreciation policy
3. legal costs
4. salary of highest paid director

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

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

Alex plc shows the following balances that have been extracted from it’s Statement of Financial Position as at 31 March 2023.

• share premium – £125k
• provision for re-organisation – £90k
• trade payables – £82k
• accruals – £12k
• estimated tax refund – £25k
• bank overdraft – £74k
• cash at bank – £44k

What amount is shown as current liabilities in the accounts?

Select ONE answer:

1. £136,000
2. £168,000
3. £193,000
4. £258,000

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 2

1. Not correct
2. Correct – £82K + £12k + £74k
3. Not correct
4. Not correct

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

The following events occurred after the year end, but before the financial statements were approved by the directors.

Which is a non-adjusting event?

Select ONE answer:

1. additional depreciation following a property revaluation
2. a fire at a warehouse
3. a major debtor becoming bankrupt
4. a provision for obsolete stock

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

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

Alex Ltd acquires the assets and assumes the liabilities of Lucy Ltd which have open market values of:

• assets – £120k
• liabilities – £15k

Acorn is to issue a debenture of £50k and 10,000 £1 ordinary shares for the balance of consideration to buy Lucy Ltd.

What will be the credit to the share premium account in the books of Alex Ltd?

Select ONE answer:

1. £45k
2. £55k
3. £60k
4. £95k

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 – £120k – £15k = £105k – £50k & 10k = £45k
2. Not correct
3. Not correct
4. Not correct

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