Tag: KS3

Accounting Multiple Choice Question -14 October 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 data is available at the end of a financial year for Alex Trading Ltd:

  • opening inventory – £500,000
  • purchases – £2,250,000
  • closing inventory – £750,000
  • gross profit margin – 50 %
  • Trade receivables collection period – 60 days

Sales are all made on credit and accrue evenly over the 360-day accounting period.

What is the value of trade receivables at the year-end?

Select ONE answer:

  1. £333,333
  2. £375,000
  3. £500,000
  4. £666,667

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 – COS = £500k + £2,250k – £750k = £2M * 2 = £4M revenue / 360 * 60 == > £666,667

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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.

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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

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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

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

Accounting Multiple Choice Question – 8 October 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 has the following assets and liabilities:

  • short-term investment – £6,000
  • loan interest owing – £1,500
  • loan repayable within one year – £12,000
  • deposits from customers for orders – £4,500
  • Trade payables – £27,000
  • Trade receivables – £39,000
  • pre-payments – £3,500

What is the amount of net current assets?

Select ONE answer:

  1. £3,500
  2. £4,500
  3. £8,000
  4. £15,500

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 1

  1. Correct == > £6K + £39k + £3.5k – £1.5k – £12k – £4.5k – £27k
  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.