Tag: KS5

Accounting Multiple Choice Question – 29 April 2022

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

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The net book value of motor vehicles of a business was as follows:

  • 31 December 2017 – £238,000
  • 31 December 2018 – £243,000

During the year ended 31 December 2018, a new motor vehicle was purchased for £47,000.

A motor vehicle costing £53,000 with accumulated depreciation £31,000 was sold for £7,000.

What was the depreciation charge for motor vehicles for the year ended 31 December 2018?

Select ONE answer:

  1. £11,000
  2. £20,000
  3. £35,000
  4. £42,000

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 ==> £238k – (£53k – £31k) + £47k = £263k – £243k = £20k
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 28 April 2022

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

apple devices books business coffee
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Why is depreciation provided on non-current assets?

  1. to ensure funds are available to replace the item
  2. to ensure the profits of the business are not overstated
  3. to match the cost of the asset with the revenue it earns

Select ONE answer:

  1. 1, 2 and 3
  2. 1 and 2 only
  3. 1 and 3 only
  4. 2 and 3 only

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 – 27 April 2022

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

apple devices books business coffee
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A business has a practice of not conducting a physical count of unused stationery at the year end.

Which accounting concept has been applied for this practice?

Select ONE answer:

  1. matching
  2. materiality
  3. money measurement
  4. prudence

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

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

Business Studies Multiple Choice Question – 26 April 2022

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

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Electromac produces audio products. The company was founded by music producer and singer Little Al.

The price elasticity of demand for Electromac Headphones is most likely to be low if the headphones.

Select ONE answer

  1. require a high proportion of a customer’s income
  2. have a unique and fashionable design
  3. are very similar to competitors’ headphones
  4. have low brand loyalty

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

  1. Not correct – requiring a high proportion of income is likely to result in a high PED rather than a low PED as customers will be more price sensitive.
  2. Correct – % change in quantity demanded/ % change in price. If Electromac headphones have a unique and fashionable design customers will want to buy them regardless of price. This makes them less price sensitive thus leading to a low PED.
  3. Not correct – PED would be high rather than low as customers could easily switch to other headphone manufacturers on the market.
  4. Not correct – this would mean that customers are more willing to try other headphone brands over Electromac and it would have high.

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Business Studies Multiple Choice Question – 25 April 2022

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

Photo by Andrea Piacquadio on Pexels.com

In Electromac’s third year of trading it experienced cash flow problems despite making a high profit.

To improve its cash flow position Electromac should?

Select ONE answer:

  1. give longer credit terms to customers
  2. pay its suppliers immediately
  3. use a factoring service
  4. increase its inventory levels

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 – payments will be delayed which will reduce the amount of cash flowing into the business and worsen the cash flow position.
  2. Not correct – this will result in more cash leaving the business before it needs to which will put more pressure on cash flow.
  3. Correct – Cash flow is the movement of money in and out of a business. Electromac needs cash immediately to meet its day to day operations. Factoring will give immediate payment and therefore should ease cash-flow.
  4. Not correct – more cash will be tied up in inventory which will worsen the cash flow situation.

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