Tag: Topic 8

Accounting Multiple Choice Question – 31 December 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

A business can make a profit and yet have a decreased bank balance.

Which of the following might cause this to happen?

Select ONE answer:

  1. The sale of non-current assets at a loss
  2. The charging of depreciation in the statement of profit or loss
  3. The lengthening of the period of credit given to customers
  4. The lengthening of the period of credit taken from suppliers

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 – 7 December 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 Trading has a Trade Receivable days ratio of 40 days based on year-end receivables.

Annual sales are £180,000 of which 13 % are cash sales.

What is the year end receivables figure based on a year of 360 days?

Select ONE answer:

  1. £2,600
  2. £17,400
  3. £20,000
  4. £45,200

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 –£180k * 0.87 = (£156.6 / 360) *40 = £17.4k
  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 – 6 December 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

Which actions would improve the liquidity (acid test) ratio of Alex Trading Ltd in the short term?

  • receivables paying their debts
  • delaying paying payables
  • 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

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

Accounting Multiple Choice Question – 5 December 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

Assets and liabilities of Alex Trading Ltd at its year end include the following information.

  • accruals – £5,000
  • bank overdraft – £6,800
  • cash – £600
  • prepayments – £4,500
  • proposed dividend – £12,000
  • Inventory – £51,800
  • trade payables – £20,100
  • trade receivables – £24,200

What is the current ratio?

Select ONE answer:

  1. 0.67 : 1
  2. 1.85 : 1
  3. 2.19 : 1
  4. 2.54 : 1

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 – (£51,800 + £24,200 + £4,500 + £600) / (£5,000 + £6,800 + £12,000 + £20,100) == > £81,100 / £43,900 == > 1.85 : 1
  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 – 6 November 2023

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

Photo by Pixabay on Pexels.com

A cash budget indicates that a company will exceed its overdraft limit.

Which item should the company consider delaying?

Select ONE answer:

  1. capital expenditure
  2. extending the credit period allowed to debtors
  3. loan interest
  4. wages of employees

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
  2. Not correct
  3. Not correct
  4. Not correct

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