Tag: Topic 8

Accounting Multiple Choice Question – 22 June 2023

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

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The accounts of Alex plc show that it has increased its sales revenue by 50 % in one year, whilst its cost of sales has increased by 60 % over the same period.

What is the explanation for the change in the gross profit margin?

Select ONE answer:

  1. an increase in marketing expenses
  2. an increase in sales price
  3. an increase in sales volume
  4. an increase in supplier price

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 – 21 June 2023

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

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The table shows information for Alex plc at the year end.

  • average inventory – £25k
  • credit sales – £150k
  • credit purchases – £112k
  • total purchases – £140k
  • trade payables – £28k
  • trade receivables – £39k

What is the payment period for trade payables (to the nearest day)?

Select ONE answer:

  1. 68 days
  2. 73 days
  3. 91 days
  4. 95 days

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 – £28k / £112k * 365
  4. Not correct

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

Accounting Multiple Choice Question – 20 June 2023

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

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A company produces the following information concerning inventory turnover (rate of inventory turn).

Year 1
average inventory – £60k
Inventory turnover – 10 times

Year 2
average inventory – Double Year 1
cost of sales – £960k

What will be the inventory turnover in year 2?

Select ONE answer:

  1. 8 times
  2. 10 times
  3. 16 times
  4. 20 times

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 – £960 / (£60k * 2) = = > 8 times
  2. Not 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 – 19 June 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 increase the liquidity (acid test or quick) ratio of a business in the short term?

  • Customers paying their debts
  • Paying suppliers
  • 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 – 12 June 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

Alex plc sells goods at cost plus 25 %.

Information for a recent financial year is shown below.

  • Turnover – £240k
  • Opening stock – £42k
  • Closing stock – £48k

What is the total of purchases for the year?

Select ONE answer:

  1. £180k
  2. £186k
  3. £192k
  4. £198k

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 – £240k / 1.25 = £192k + (£48k – £42k)

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