Tag: Topic 8

Accounting Multiple Choice Question – 7 September 2023

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

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Alex Trading plc wishes to reduce its gearing.

Select ONE answer:

  1. a bonus issue of ordinary shares
  2. an issue of debentures
  3. an issue of convertible loan stock
  4. a rights issue of ordinary 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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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Accounting Multiple Choice Question – 6 September 2023

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 shows the effect of Alex plc raising a loan to buy non-current assets?

Select ONE answer:

  1. Asset Use Ratio – Decrease AND Gearing – Decrease
  2. Asset Use Ratio – Decrease AND Gearing – Increase
  3. Asset Use Ratio – Increase AND Gearing – Decrease
  4. Asset Use Ratio – Increase AND Gearing – Increase

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
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 5 September 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
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During a financial year, Alex Ltd made cash sales of £63,875 and credit sales of £146,000.

Trade receivables pay every 40 days.

What is the total of trade receivables at the end of the year?

Select ONE answer:

  1. £7,000
  2. £12,167
  3. £16,000
  4. £23,000

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 3

  1. Not correct
  2. Not correct
  3. Correct –£146,000 / 365 days * 40 days = £16,000
  4. Not correct

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

Accounting Multiple Choice Question – 18 August 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

The following information has been taken from a recent statement of financial position of Alex ltd:

  • non-current assets – £150,000
  • Capital – £170,000
  • current liabilities – £5,000

What is the current ratio?

Select ONE answer:

  1. 3 : 1
  2. 4 : 1
  3. 5 : 1
  4. 6 : 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 3

  1. Not correct
  2. Not correct
  3. Correct – NCA + CA – CL = C == > £170k – (£150k – £5k) = £25k == > £25k / £5k = 5 : 1
  4. Not correct

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

Accounting Multiple Choice Question – 17 August 2023

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

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What might cause working capital / net current assets to fall?

Select ONE answer:

  1. an amount owing by a customer has turned out to be a bad debt
  2. an old delivery van has been given in full exchange for a new computer
  3. a payment of cash has been made to a trade payable
  4. new inventory has been purchased on credit

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.