Tag: Management Accounting

Accounting Multiple Choice Question – 9 December 2023

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

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Which name is given to the difference between a company’s actual sales and break-even sales?

Select ONE answer:

  1. margin of safety
  2. marginal cost
  3. marginal C-V-P (cost-volume-profit) analysis
  4. marginal revenue

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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Accounting Multiple Choice Question – 26 November 2023

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

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Which expense is included in prime cost of manufacturing?

Select ONE answer:

  1. depreciation of machinery
  2. purchase of factory machinery
  3. purchase of raw materials
  4. supervisor’s wages

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

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

Accounting Multiple Choice Question – 13 November 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 Trading plc has £5M to invest and has identified the following the following five projects:

  • project number 1 — £5M capital required — £1.4M NPV of project
  • project number 2 — £4M capital required — £1.2M NPV of project
  • project number 3 — £3M capital required — £1.0M NPV of project
  • project number 4 — £2M capital required — £0.8M NPV of project
  • project number 5 — £1M capital required — £0.5M NPV of project

Which projects should Alex Trading plc select?

Select ONE answer:

  1. Project 1 Only
  2. Project 2 and 5
  3. Project 2 and 4
  4. Project 3 and 5

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 – 12 November 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 Trading Ltd is evaluating whether to invest in a project.

The table shows estimates for the project with a discount factor (8%)

initial investment
year 0 – £58,500 == > DCF 1.000

projected cash flows
year 1 – £37,300 == > DCF 0.926
year 2 – £21,200 == > DCF 0.857
year 3 – £19,500 == > DCF 0.794

What is the net present value (NPV) of the project to Alex Trading Ltd?

Select ONE answer:

  1. -£19,500
  2. -£9,691
  3. +£9,691
  4. +£19,500

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 – Minus £58,500 + (£37,300 * 0.926) + (£21,200 * 0.857) + (£19,500 * 0.794)
  4. Not correct

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

Accounting Multiple Choice Question – 11 November 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 Trading Ltd invests in a project which cost £210,000.

The project will yield annual cash flows of £90,000 for each of the next three years.

After providing annual depreciation of £10,000 the project will yield an annual profit of £80,000.

What is the payback period, assuming profits and depreciation arise at the year-end?

Select ONE answer:

  1. 2.33 years
  2. 2.50 years
  3. 2.62 years
  4. 3 years

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 – £210k – £90k – £90k – £30k / £90k == > 2 1/3 years
  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.