Tag: Topic 16

Accounting Multiple Choice Question – 28 January 2025

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

Two brothers, Ken and Alex, run a family-owned removals company called Ted Moves It Ltd based in Staffordshire which is currently facing liquidity problems and needs an injection of funds.

From the following list of sources of finance available to the company, identify which would be classified as a source of short-term finance?

Select ONE answer:

  1. Share capital
  2. Bank Loan
  3. Factoring
  4. Commercial mortgage

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 == > Short-term funds are those used to cover normal operations and can be taken to mean finance available for up to one year. An example is debt factoring. Bank loans and mortgages are debt finance provided for more than one year, while share capital is equity finance that is also provided for more than one year.
  4. Not correct

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

Accounting Multiple Choice Question – 27 January 2025

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

Which aspects of an organisation’s performance with respect to sustainability are measured using ‘triple bottom line’ measures?

Select ONE answer:

  1. Economy, effectiveness, efficiency
  2. Economic, social, environmental
  3. Profitability, liquidity, investment
  4. Productivity, activity, profitability

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 == > The triple bottom line measures an organisation’s performance in terms of its achievement of sustainability goals relating to social, economic and environmental factors.
  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 January 2025

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, a consultant, has made two statements about the primary focus of the users of financial statements of Lucy plc.

Statement 1 The primary focus of suppliers is on Lucy’s risk and return.

Statement 2 The primary focus of shareholders is on Lucy’s solvency.

Are these statements true or false?

Select ONE answer:

  1. Statement 1 True and Statement 2 False
  2. Statement 1 False and Statement 2 True
  3. Statement 1 True and Statement 2 True
  4. Statement 1 False and Statement 2 False

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 == > Liquidity, not risk and return, is the main concern for the entity’s suppliers. Risk and return, not solvency, are the main concern of the entity’s shareholders.

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

Accounting Multiple Choice Question – 25 January 2025

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

Three basic approaches to performance measures are measures of economy, efficiency, and effectiveness.

Economy is measured by?

Select ONE answer:

  1. The amount of resources used for the tasks that have been achieved
  2. The success in achieving goals and targets
  3. Team member satisfaction and the motivational climate
  4. The success of the team or work group in controlling its costs

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 == > Economy is measured by the success of the team or work group in controlling its costs.

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

Accounting Multiple Choice Question – 24 January 2025

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

Which of the following statements about critical success factors (CSFs) for a business is true?

Select ONE answer:

  1. Low costs will always be a CSF; high sales revenue will always be a CSF
  2. Low costs will always be a CSF; high sales revenue will not always be a CSF
  3. Low costs will not always be a CSF; high sales revenue will always be a CSF
  4. Low costs will not always be a CSF; high sales revenue will not always be a CSF

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 == > High quality might be more important than costs, high margins might be more important than revenue. We cannot therefore state that either low costs or high sales revenue will always be CSFs.

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