Tag: Limited Company Financial Statements

Accounting Multiple Choice Question – 7 July 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 events occurred after the year end, but before the financial statements were approved by the directors.

Which is a non-adjusting event?

Select ONE answer:

  1. additional depreciation following a property revaluation
  2. a fire at a warehouse
  3. a major debtor becoming bankrupt
  4. a provision for obsolete stock

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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Accounting Multiple Choice Question – 6 July 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 Ltd acquires the assets and assumes the liabilities of Lucy Ltd which have open market values of:

  • assets – £120k
  • liabilities – £15k

Acorn is to issue a debenture of £50k and 10,000 £1 ordinary shares for the balance of consideration to buy Lucy Ltd.

What will be the credit to the share premium account in the books of Alex Ltd?

Select ONE answer:

  1. £45k
  2. £55k
  3. £60k
  4. £95k

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 – £120k – £15k = £105k – £50k & 10k = £45k
  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 – 2 July 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 amount shown on the cash flow statement of Alex plc for 2022 as taxation paid amounts to £96,000.

The extract of the Income Statement for Alex plc for 2022 and 2021 is as follows:

  • operating profit for the year – 2022 £350k and 2021 £336k
  • provision for taxation – 2022 (£110k) and 2021 (£104k)
  • profit after taxation – 2022 £240k and 2021 £232k

The liability for taxation at the 2021 year end was £100k.

What is the total tax provision disclosed in the statement of financial position of Alex plc for 2022?

Select ONE answer:

  1. £14,000
  2. £110,000
  3. £114,000
  4. £210,000

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 3

  1. Not correct
  2. Not correct
  3. Correct – £100k + £110k – £96k = = > £114k
  4. Not correct

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Accounting Multiple Choice Question – 1 July 2023

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

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In a cash flow statement, which item is a cash outflow?

Select ONE answer:

  1. a decrease in stock
  2. a decrease in trade debtors
  3. a decrease in trade creditors
  4. an issue of bonus shares

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
  2. Not correct
  3. Correct
  4. Not correct

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

Accounting Multiple Choice Question – 18 June 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 plc’s draft statement of financial position shows the following balances:

  • Share capital ordinary shares of £10 each – £100,000
  • Share premium reserve – £60,000
  • Profit and loss account (credit) – £210,000

During the year Alex plc:

  • pays a dividend of £70,000
  • makes a bonus issue of 5,000 ordinary shares
  • raises a debenture loan of £120,000.

What will be the total of share capital and reserves after these transactions are completed?

Select ONE answer:

  1. £250,000
  2. £300,000
  3. £350,000
  4. £420,000

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 – Start position is £100K + £60,k + £210k = £370k then £70k dividend payment (bonus issue no impact Dr Share Premium Cr Share Capital + Debenture Loan no impact Dr Cash Cr NCL)
  3. Not correct
  4. Not correct

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