Tag: GCSE

Accounting Multiple Choice Question – 22 June 2023

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

The accounts of Alex plc show that it has increased its sales revenue by 50 % in one year, whilst its cost of sales has increased by 60 % over the same period.

What is the explanation for the change in the gross profit margin?

Select ONE answer:

  1. an increase in marketing expenses
  2. an increase in sales price
  3. an increase in sales volume
  4. an increase in supplier price

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.

Accounting Multiple Choice Question – 21 June 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

The table shows information for Alex plc at the year end.

  • average inventory – £25k
  • credit sales – £150k
  • credit purchases – £112k
  • total purchases – £140k
  • trade payables – £28k
  • trade receivables – £39k

What is the payment period for trade payables (to the nearest day)?

Select ONE answer:

  1. 68 days
  2. 73 days
  3. 91 days
  4. 95 days

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 – £28k / £112k * 365
  4. Not correct

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

Accounting Multiple Choice Question – 20 June 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

A company produces the following information concerning inventory turnover (rate of inventory turn).

Year 1
average inventory – £60k
Inventory turnover – 10 times

Year 2
average inventory – Double Year 1
cost of sales – £960k

What will be the inventory turnover in year 2?

Select ONE answer:

  1. 8 times
  2. 10 times
  3. 16 times
  4. 20 times

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 – £960 / (£60k * 2) = = > 8 times
  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 – 19 June 2023

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

Which actions would increase the liquidity (acid test or quick) ratio of a business in the short term?

  • Customers paying their debts
  • Paying suppliers
  • Selling a number of surplus non-current assets
  • Selling Inventory

Select ONE answer:

  1. 1 and 2
  2. 2 and 3
  3. 1 and 4
  4. 3 and 4

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.

Accounting Multiple Choice Question – 18 June 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 plc’s draft statement of financial position shows the following balances:

  • Share capital ordinary shares of £10 each – £100,000
  • Share premium reserve – £60,000
  • Profit and loss account (credit) – £210,000

During the year Alex plc:

  • pays a dividend of £70,000
  • makes a bonus issue of 5,000 ordinary shares
  • raises a debenture loan of £120,000.

What will be the total of share capital and reserves after these transactions are completed?

Select ONE answer:

  1. £250,000
  2. £300,000
  3. £350,000
  4. £420,000

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 – Start position is £100K + £60,k + £210k = £370k then £70k dividend payment (bonus issue no impact Dr Share Premium Cr Share Capital + Debenture Loan no impact Dr Cash Cr NCL)
  3. Not correct
  4. Not correct

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