Tag: Topic 16

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.

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

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.

Accounting Multiple Choice Question – 17 June 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

Alex plc issues 1M ordinary shares of £1 each for £3 each and £500k 6 % debentures.

By what amount will the net assets of Alex plc increase as a result of these transactions?

Select ONE answer:

  1. No increase
  2. £2.5M
  3. £3.0M
  4. £3.5M

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 Cash £3M + £0.5M Cr NCL £0.5M SC £3M = = > A – L = C = £3.5M – £0.5M = £3M
  4. Not correct

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