Tag: Financial Accounting

Accounting Multiple Choice Question – 13 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 following information has been taken from a recent statement of financial position of Alex Trading:

  • non-current assets – £30,000
  • working capital ratio – 5:1
  • capital – £34,000
  • current liabilities – £1,000

What is the amount of the current assets?

Select ONE answer:

  1. £1,000
  2. £5,000
  3. £6,000
  4. £20,000

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 == > A-L = C therefore £30k – £1k = £29k thus CA are £5k or wcr of 5:1 means £5k / £1K = 5:1
  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 – 12 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

Which ratio indicates how efficiently a company controls its overheads?

Select ONE answer:

  1. current assets / current liabilities
  2. gross profit / revenue
  3. Profit for the year / revenue
  4. revenue / capital employed

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 – 11 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 plc, with an existing issued share capital of 200,000 shares of £0.50 made a one for four bonus issue.

This was later followed by a one for two rights issue at £1.20 per share.

What will be the balance on the share capital account after these transactions?

Select ONE answer:

  1. £125,000
  2. £187,500
  3. £270,000
  4. £375,000

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 == > 200,000 * £0.5 = £100k + (200,000 / 4 * £0.50) = £125k * 1.5 = £187,500
  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 – 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.