Accounting Multiple Choice Question – 8 February 2023

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

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What will increase Alex plc’s gearing?

Select ONE answer:

  1. an issue of debentures
  2. an issue of ordinary shares
  3. redemption of debentures
  4. repayment of a long-term loan

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. Not correct
  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 – 7 February 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 plc has ordinary shares with a nominal value of £10 each and a current market price of £20 each.

Earnings per share is £0.50, and dividend per share is £0.20.

What is the price earnings ratio?

Select ONE answer:

  1. 20
  2. 40
  3. 50
  4. 100

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- £20 / £0.5 = 40
  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 – 6 February 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 obtained for a company:

  • declared dividend rate – £0.05
  • market price per share – £4.00
  • nominal value of shares – £0.50

What is the dividend yield?

Select ONE answer:

  1. 1.25%
  2. 2.50%
  3. 5.00%
  4. 10.00%

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- £0.05 / £4.00 = 1.25%
  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 – 5 February 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

Which profit figure is used in the calculation of earnings per share?

Select ONE answer:

  1. accumulated profits
  2. profit for the year after interest
  3. profit for the year after interest and dividends
  4. operating profit

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.

Accounting Multiple Choice Question – 4 February 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 published Balance Sheet for a company at 1 January 2015 included:

Ordinary share capital – £500M
Profit and Loss Account – £200M

The company results for the year to 31 December 2015 included:

profit before taxation – £50M
taxation – £15M
dividends proposed – £10M
revaluation surplus on land – £15M

What was the Profit and Loss Account balance at 31 December 2015?

Select ONE answer:

  1. £225M
  2. £240M
  3. £250M
  4. £265M

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 – £200M + (£50M – £15M – £10M)
  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.

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