Tag: Topic 17

Accounting Multiple Choice Question – 31 May 2024

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

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What are the primary objectives of profit-oriented and non-profit oriented organisations?

Select ONE answer:

Profit-oriented organisation Non-profit oriented organisation

  1. Output of goods/services Minimise costs
  2. Output of goods/services Provision of goods/services
  3. Maximisation of wealth Minimise costs
  4. Maximisation of wealth Provision of goods/services

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 – Profit-oriented organisations should aim to maximise shareholder wealth. Non-profit oriented organisations, such as charities, should aim to provide goods and/or services.

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Accounting Multiple Choice Question – 30 May 2024

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

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Organisations can be defined or described in various ways.

Which THREE of the following are the key characteristics that are shared by all organisations?

A Synergy
B Social arrangement
C Collective goals
D Specialisation
E Controlled performance
F Exchange of goods and services

Select ONE answer:

  1. A, D, F
  2. B, D, F
  3. B, C, E
  4. C, D, E

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 – An organisation is a social arrangement that pursues collective goals, that controls its own performance, and, in addition, that has a boundary separating it from its environment. The other options are all ways that enable an organisation to increase productivity.
  4. Not correct

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Accounting Multiple Choice Question – 15 January 2024

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

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The directors of Alex Trading plc wish to omit an item from the company’s financial statements on the grounds that it is commercially sensitive.

Information on this item would influence the stakeholders when making economic decisions.

According to IAS 1 Presentation of Financial Statements, the item is thus said to be?

Select ONE answer:

  1. Neutral
  2. Prudent
  3. Material
  4. Understandable

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 – Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken, based on the financial statements
  4. Not correct

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Accounting Multiple Choice Question – 10 January 2024

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

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Which of the following statements about accounting concepts and the characteristics of financial information is correct?

Select ONE answer:

  1. Financial statements are required to give a true and fair view. These terms have clear definitions which are included in IAS1
  2. The historical cost concept means that only items capable of being measured in monetary terms can be recognised in financial statements
  3. It may sometimes be necessary to exclude information that is relevant and reliable from financial statements because it is too difficult for some users to understand
  4. A specific disclosure requirement of an IAS1 need not be satisfied if the information is immaterial

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 – While financial statements are required to give a true and fair view, these terms are not defined in statute, they tend to be determined in courts of law or on the facts (1). Recognition of items based on monetary amounts is the money measurement concept, not the historical cost concept (2). Items should not be excluded because of being difficult to understand (3).

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Accounting Multiple Choice Question – 8 January 2024

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

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Information is relevant if it can make a difference in the decisions made by users.

According to the IASB’s Conceptual Framework, financial information can make a difference in decisions if it has which of the following features?

  1. Predictive value
  2. Comparative value
  3. Historic value
  4. Confirmatory value

Select ONE answer:

  1. 1 and 3 only
  2. 2 and 4 only
  3. 1 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 – Financial information can make a difference to decisions if it has predictive value (it can be used to predict future outcomes) or confirmatory value (it provides feedback about previous evaluations).
  4. Not correct

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