Tag: Management Accounting

Accounting Multiple Choice Question – 20 August 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

Assuming all other factors remain unchanged, the break-even point of a business can be lowered by increasing its?

Select ONE answer:

  1. budgeted sales
  2. fixed costs
  3. marginal costs
  4. selling prices

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

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

Accounting Multiple Choice Question – 19 August 2023

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

The diagram shows a break-even chart.

Which line represents the margin of safety?

Select ONE answer:

  1. WX
  2. WY
  3. XY
  4. XZ

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 – 7 August 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

When valuing stocks of finished goods on an absorption cost basis, which costs should be included?

Select ONE answer:

  1. production
  2. production and administration
  3. production, marketing and distribution
  4. production, marketing, administration and distribution

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

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

Accounting Multiple Choice Question – 27 July 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

Discounting methods have been used to evaluate an investment project over a three year life.

The project will produce annual net inflows of £2M.

£500,000 of the initial investment can be recovered at the end of the third year.

Discount factors at 10 % are:

  • Year 1 – factor 0.91
  • Year 2 – factor 0.83
  • Year 3 – factor 0.75

What is the present value of project cash inflows?

Select ONE answer:

  1. £4.98M
  2. £5.36M
  3. £5.48M
  4. £6.38M

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 – Y1 £2M * 0.91 = £1.82M + Y2 £2M * 0.83 = £1.66M + Y3 £2M * 0.75 = £1.5M + IV £0.5M * 0.75 = £0.375M == > £5.36M
  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 – 26 July 2023

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

The following four methods are used to evaluate projects.

  • accounting rate of return
  • internal rate of return
  • net present value
  • payback

Which methods are based on using cash flows?

Select ONE answer:

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