Tag: Management Accounting

In the UK which of the following are responsible for the preparation of company annual financial statements?

Select ONE answer:

1. The shareholders
2. The board of directors
3. The auditors
4. The members

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. Notcorrect
2. Correct – by law it is the board of directors which is responsible for preparing financial statements.
3. Not correct
4. Not correct

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As at 1 July 2023 Alex plc owed £524,925 to suppliers plus £96,53 to staff in respect of bonuses.

In the year to 30 June 2024, it paid trade suppliers £1,249,506 and £34,682 in staff bonuses.

Alex plc also posted £1,987,345 to its trade payables control account from the purchases journals and received discounts of £12,824. 

At the end of the accounting period, it processed a contra with the receivables ledger of £8,236 and calculated that it owed £12,762 in staff bonuses for the year.

What is the amount for staff bonuses will be included in Alex plc’s administrative expenses for the year ended 30 June 2024?

Select ONE answer:

1. £12,267
2. £31,573
3. £37,791
4. £57,097

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 == > Dr Bank Payments £34,682 + Bal c/d £12,762 = Total £47,444 – Cr Balance B/D £9,653 == > I/S £37,791
4. Not correct

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

As at 30 September 2023 Alex plc has a negative cash book balance of £2,643.

Its bank statement shows a debit balance of £9,647.

The following matters are discovered:

1. Alex plc’s cashier prepared a paying-inn slip with a total value of £5,016 and paid this into the bank on 30 September 2023 with cash and cheques. No amount in respect of this appears on the month-end bank statement. Alex plc has since been notified by the bank that the paying-in slip total was overcast in error by £90.
2. Alex plc recorded and presented for payment at its bank a cheque for £1,988 from Lucy plc on26 September 2023. This appeared on the bank statement on 27 September. On 30 September, the bank statement shows that it was returned unpaid. Alex plc was informed of this by letter on 1 October 2023.
3. The company held notes and coin at 30 September 2023 of £160.

In Alex plc’s statement of financial position at at 30 September 2023its figure for current liabilities in relation to the overdraft will be?

Select ONE answer:

1. £565
2. £745
3. £4,721
4. £4,881

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 == > Balance per bank Statement = O/D £9,647 + (£5,016 – £90) = O/D £4,721 == > Balance per cash book b/d £2,643 Credit + £90 Credit + £1,988 Credit = New Balance per cash book £4,721 Credit
4. Not correct

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