Tag: Financial Accounting

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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Accounting Multiple Choice Question – 18 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 a recent statement of financial position of Alex ltd:

  • non-current assets – £150,000
  • Capital – £170,000
  • current liabilities – £5,000

What is the current ratio?

Select ONE answer:

  1. 3 : 1
  2. 4 : 1
  3. 5 : 1
  4. 6 : 1

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 – NCA + CA – CL = C == > £170k – (£150k – £5k) = £25k == > £25k / £5k = 5 : 1
  4. Not correct

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Accounting Multiple Choice Question – 17 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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What might cause working capital / net current assets to fall?

Select ONE answer:

  1. an amount owing by a customer has turned out to be a bad debt
  2. an old delivery van has been given in full exchange for a new computer
  3. a payment of cash has been made to a trade payable
  4. new inventory has been purchased on credit

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
  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 – 16 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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Which of the following correctly shows the effect of a company increasing the value of its freehold property?

Select ONE answer:

  1. asset use ratio – decrease AND gearing – decrease
  2. asset use ratio – decrease AND gearing – increase
  3. asset use ratio – increase AND gearing – decrease
  4. asset use ratio – increase AND gearing – increase

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
  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 – 15 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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Alex plc has a gross profit to sales ratio of 40 %, and a net profit to sales ratio of 10 %.

If the sales volume increases by 8 % which of the following will generally be true?

Select ONE answer:

  1. gross profit to sales ratio – Increase AND net profit to sales ratio – Decrease
  2. gross profit to sales ratio – Increase AND net profit to sales ratio – Increase
  3. gross profit to sales ratio – Unchanged AND net profit to sales ratio – Decrease
  4. gross profit to sales ratio – Unchanged AND net profit to sales ratio – Increase

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

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