Tag: KS3

Accounting Multiple Choice Question – 15 November 2023

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

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A transport business owned by Alex, the sole proprietor, purchased a motor vehicle.

This was charged to the Motor Expenses account. 

What are the effects of this on the end-of-year statement of financial position?

Select ONE answer:

  1. Non-current assets understated & current assets understated
  2. Non-current assets overstated & current assets overstated
  3. Non-current assets overstated & capital account overstated
  4. Non-current assets understated & capital account understated

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

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Accounting Multiple Choice Question – 14 November 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

A vehicle cost £30,000. 

The vehicle was later sold for £9,000 and the profit on disposal was £1,500.

What was the accumulated depreciation of the vehicle on disposal?

Select ONE answer:

  1. £7,500
  2. £9,000
  3. £21,000
  4. £22,500

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – £30k – (£9k – £1.5k) = £22.5k

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

Accounting Multiple Choice Question – 11 November 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 Trading Ltd invests in a project which cost £210,000.

The project will yield annual cash flows of £90,000 for each of the next three years.

After providing annual depreciation of £10,000 the project will yield an annual profit of £80,000.

What is the payback period, assuming profits and depreciation arise at the year-end?

Select ONE answer:

  1. 2.33 years
  2. 2.50 years
  3. 2.62 years
  4. 3 years

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 – £210k – £90k – £90k – £30k / £90k == > 2 1/3 years
  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 – 10 November 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

Budgeted and actual sales of a product sold by Alex Trading Ltd are given.

  • sales in units: budget 2,000 and actual 1,800
  • selling price per unit: budget £15 and actual £?
  • sales revenue: budget £30,000 and actual £28,800

What is the sales price variance?

Select ONE answer:

  1. £1,200 adverse
  2. £1,200 favourable
  3. £1,800 adverse
  4. £1,800 favourable

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 – Actual price – Standard price * Actual quantity == > £28,800 / 1,800 = £16 == > £15 – £16 * 1,800 = £1,800 FAV

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Accounting Multiple Choice Question – 9 November 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 standard material cost of producing 1,500 units of a product A are shown below

  • material X – 9,000kg at £4 per kg = £36,000
  • material Y – 18,000 kg at £3 per kg = £54,000

The actual material cost to produce 1,500 units of product A was as follows.

  • material X – 8,500kg used which cost £34,425
  • material Y – 18,200kg used which cost £53,690

What is the total material usage variance?

Select ONE answer:

  1. £1,400 favourable
  2. £1,435 favourable
  3. £2,600 favourable
  4. £2,615 favourable

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 – Standard price * (standard quantity – actual quantity) == > £4 * 500 FAV + £3 * 200 ADV = £1,400 FAV
  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.