Tag: Topic 17

Accounting Multiple Choice Question – 6 June 2025

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

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Alex is a market trader who has noticed that when the price of cakes rises, his Stafford customers tend to buy more biscuits instead.

The effect operating here is?

Select ONE answer:

  1. The income effect
  2. The diminishing marginal utility effect
  3. The substitution effect
  4. The price elasticity of demand

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 == > The effect of a price rise in one good is to make the prices of other goods relatively cheaper. The resultant shift in demand towards the relatively cheaper goods is an example of the substitution effect.
  4. Not correct

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Accounting Multiple Choice Question – 5 June 2025

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

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Alex trades as Stafford Reproduction, a manufacturer of classic furniture and furnishings for discerning clientele .

Alex predicts that if people’s incomes rise next year, then the demand for our furniture will increase.’

The accuracy of Alex’s prediction depends on whether the furniture and furnishings the company produces?

Select ONE answer:

  1. Are normal goods
  2. Have few substitutes
  3. Have many complements
  4. Have few complements

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 == > With normal goods, a rise in incomes will be accompanied by a rise in demand for them as opposed to a fall in demand for inferior goods. The existence of complementary goods and substitute goods has no effect in this context.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 4 June 2025

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

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Big Staffie plc operates its own internal audit function, choosing not to make use of an external supplier for these services.

Considering this policy, it is vital that arrangements are established within the company to ensure that there is no compromise of the?

Select ONE answer:

  1. Independence of the internal auditors
  2. Integrity of information security systems
  3. Stewardship of directors
  4. Rigour of financial reporting processes

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 == > An effective internal audit function has, as a fundamental requirement, to always maintain its independence
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 3 June 2025

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

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The appointment of suitably qualified, independent auditors is the responsibility of a listed company’s…. ?

Select ONE answer:

  1. Shareholders
  2. Audit committee
  3. Board of directors
  4. Finance director

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 == > It is the shareholders who vote to appoint the external auditors, although this is usually on the recommendation of the audit committee and the board. The finance director may be heavily involved in the conduct of the audit but should not be actively involved in appointment except as a member of the board.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 2 June 2025

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

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Big Staffie plc external (statutory) auditors, Tick and Co, have just won a contract with Big Staffie plc to provide IT consultancy services.

Which of the following entities would usually be expected to examine the implications of this situation?

Select ONE answer:

  1. The board of directors
  2. The remuneration committee
  3. The audit committee
  4. The non-executive directors

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 == > One of the specific roles and responsibilities accorded to the audit committee by the Code is the development and implementation of policy on the engagement of the external auditor to supply non-audit services. This is contained in provisions supporting main principle C3 (accountability: audit committee and auditors).
  4. Not correct

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