Tag: KS3

The objective of the accountancy profession can best be described as?

Select ONE answer:

1. Providing financial information about an entity to external users, which is useful to them in making economic decisions and for assessing the stewardship of the entity’s management
2. Measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and other decision makers make resource allocation decisions
3. Identifying, measuring, accumulating, analysing, preparing, interpreting and communicating information used by management to plan, evaluate and control an entity and to assure appropriate use of and accountability for its resources
4. Managing all the processes associated with the raising and use of financial resources in a business

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 accountancy profession is concerned with providing measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and other decision makers make resource allocation decisions.. (1) relates to financial reporting; (2) to management accounting; and (4) to financial management.
3. Not correct
4. Not correct

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

Alex has the choice of two investments carrying similar levels of risk – one is short-term and the other is a long-term bond.

Alex would expect the interest on the longer-term bond to be?

Select ONE answer:

1. Normally higher
2. Lower
3. Normally the same
4. Impossible to tell

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 == > The long-term interest rate is normally but not always higher than the short-term rate.
2. Not correct
3. Not correct
4. Not correct

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

Ken and Jill are couple in their early 60s with grown-up children Lucy and Alex.

The key financial objective for Ken and Jill will be to maximise income because?

Select ONE answer:

1. Their expenditure is so high
2. They can save and invest for retirement
3. They can launch their work careers
4. They can buy their first house

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 == > At this stage in their lives people generally aim to build up their retirement ‘nest-eggs’. As their children are grow-up, their expenditure is not so high, plus they have generally already bought property and established careers.
3. Not correct
4. Not correct

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

Alex plc is waiting to start its new factory building programme.

It is likely to start within the next 120 days, but the precise start date and timing of the cash flows are still uncertain.

Alex plc has £250,000 available in cash in anticipation of the investment in the factory being made when the building programme begins.

Which of the following is the least appropriate use of the funds in the interim period?

Select ONE answer:

1. Investment in equities
2. Treasury or central government bills
3. Bank deposits
4. Local authority deposits

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 == > Short-term cash surpluses will NOT normally be invested in equities owing to the risks associated with achieving a positive return over a short period.
2. Not correct
3. Not correct
4. Not correct

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