Tag: Ratio Analysis

Accounting Multiple Choice Question – 19 June 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 actions would increase the liquidity (acid test or quick) ratio of a business in the short term?

  • Customers paying their debts
  • Paying suppliers
  • Selling a number of surplus non-current assets
  • Selling Inventory

Select ONE answer:

  1. 1 and 2
  2. 2 and 3
  3. 1 and 4
  4. 3 and 4

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

Accounting Multiple Choice Question – 12 June 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

Alex plc sells goods at cost plus 25 %.

Information for a recent financial year is shown below.

  • Turnover – £240k
  • Opening stock – £42k
  • Closing stock – £48k

What is the total of purchases for the year?

Select ONE answer:

  1. £180k
  2. £186k
  3. £192k
  4. £198k

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 – £240k / 1.25 = £192k + (£48k – £42k)

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