Tag: ICAEW

Accounting Multiple Choice Question – 2 December 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 Ltd’s income statement includes:

  • dividend – £300k
  • increase in inventory – £200k
  • Overheads – £400k
  • purchases – £800k

If the profit percentage as a relation to revenue is 20%, what is the figure for sales?

Select ONE answer:

  1. £1,120,000
  2. £1,250,000
  3. £1,625,000
  4. £1,750,000

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 – the method to reach the sales figure is to calculate the expenses (£800k less £200k plus £400k = £1M) and gross it up by 100/80 to get £1,250k
  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 – 1 December 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

The directors of Alex Ltd provide the following information to you.

  • bank overdraft – £1,200
  • equipment – £12,000
  • long term loan – £8,000
  • petty cash – £900
  • Inventory – £2,500
  • trade payables – £3,000
  • Trade receivables – £2,000

What is the amount of the net current assets?

Select ONE answer:

  1. £1,200
  2. £2,400
  3. £3,600
  4. £5,200

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 – £2,500 + £2.000 + £900 – £3,000 – £1,200
  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 – 30 November 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 following items appear in the subscriptions account for the Milford skittles club for a financial year.

  • subscriptions that were received which were owed from the previous year – £3,000
  • subscriptions paid in advance for next year – £1,000
  • subscriptions income transferred to the income and expenditure account – £50,000
  • subscriptions outstanding from members at the year-end – £2,000

How much cash was actually received from the members in the financial year?

Select ONE answer:

  1. £46,000
  2. £50,000
  3. £52,000
  4. £56,000

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 3

  1. Not correct
  2. Not correct
  3. Correct – £50K + £3k – £2K + £1k
  4. Not correct

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

Accounting Multiple Choice Question – 28 November 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

A loan due for repayment in 20 months’ time has been included as a current liability.

What will be the effect when this is corrected?

Select ONE answer:

  1. increase net assets
  2. increase net current assets
  3. no effect on net current assets
  4. reduce net current assets

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

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