Tag: Financial Accounting

Accounting Multiple Choice Question – 10 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

What is the effect on Alex Trading plc ’s balance sheet of issuing bonus shares?

Select ONE answer:

  1. the bank balance will be increased
  2. the long term liabilities will be increased
  3. the reserves will be reduced
  4. the share capital will be reduced

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.

Accounting Multiple Choice Question – 8 October 2023

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

Photo by Pixabay on Pexels.com

Alex Trading Ltd has the following assets and liabilities:

  • short-term investment – £6,000
  • loan interest owing – £1,500
  • loan repayable within one year – £12,000
  • deposits from customers for orders – £4,500
  • Trade payables – £27,000
  • Trade receivables – £39,000
  • pre-payments – £3,500

What is the amount of net current assets?

Select ONE answer:

  1. £3,500
  2. £4,500
  3. £8,000
  4. £15,500

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 1

  1. Correct == > £6K + £39k + £3.5k – £1.5k – £12k – £4.5k – £27k
  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 – 7 October 2023

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

Photo by Olya Kobruseva on Pexels.com

Alex Trading Ltd uses the weighted average cost (AVCO) method of stock valuation.

During March the following transactions took place.

  • 1 March – opening stock 200 units at £6.00 per unit – £1,200
  • 14 March – received 300 units at £6.50 per unit – £1,950
  • 20 March – issued 250 units to production at £7.00 per unit – £1,750
  • 28 March – received 100 units at £6.70 per unit – £670

What is the value of stock at 31 March?

Select ONE answer:

  1. £2,195
  2. £2,245
  3. £2,295
  4. £2,450

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 == > (£1,200 + £1,950) / 500 = £6.3 * 250 + £670
  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 – 6 October 2023

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

Photo by Olya Kobruseva on Pexels.com

The inventory records of a Alex Trading Ltd show the following information for product Z:

  • 1 January: opening balance – 100 units at a value of £3
  • 3 January: receipts into inventory – 50 units at a value of £4
  • 8 January: inventory issued – 120 units

What is the value of the inventory issued on 8 January using the First In First Out (FIFO) method?

Select ONE answer:

  1. £360
  2. £380
  3. £410
  4. £420

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 == > £100 * £3 + 20 * £4
  3. Not correct
  4. Not correct

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