Skip to main content

Question Bank - Business Studies 1

Accounting and Finance: Test 1
Q1. A company buys and sells CD and DVD players. In a month it bought 200 DVD machines at a price of £80 each and sold 140 at a price of £150 each. 50% of its purchases and 75% of its sales were on credit. These were the only transactions for the firm for the month. What effect did this have on the level of debtors that the business had?

(Select one answer)


(a) * + £8,000
(b) * + £15,750
(c) * - £15,750
(d) * - £8,000


Source: bized


Q2. A firm budgeted it use and costs of a raw material in a particular department at 50 tonnes per month at a price of £1,000 per tonne. In the even, the actual cost and usage was £980 per tonne and 51 tonnes. The accountants calculated and reported the material variance as

(Select one answer)


(a) * - £20 Favourable
(b) * - £20 Unfavourable
(c) * + £20 Favourable
(d) * + £20 Unfavourable


Source: bized


Q3. A firm had budgeted its sales at 10,000 per month at a price of £50 per unit. The actual performance was sale of 9,000 at an average price of £52.40 per unit. The accountants calculated a reported a sales revenue variance of

(Select one answer)


(a) * - £28,400 Favourable
(b) * + £28,400 Unfavourable
(c) * + £28,400 Favourable
(d) * - £28,400 Unfavourable


Source: bized


Q4. A firm knows that it sells a product with a price elasticity of demand of (-) 0.75. At present it sells 20,000 units each week at a price of £2.50 per unit. What will happen to the firms revenue per week if it raises its prices by 20%?

(Select one answer)


(a) * Increase by £1,000
(b) * Increase by £100
(c) * Decrease by £100
(d) * Decrease by £1,000


Source: bized


Q5. A budget is

(Select one answer)


(a) * a statement showing how much must be spent in a period of time.
(b) * a plan, in financial terms, of a companies expenditure for a period of time in the future.
(c) * A plan, in financial terms, of a companies revenues and expenditures for a period of time ahead.
(d) * a statement, in financial terms, showing how much was received and spent last year.


Source: bized


Q6. A company plans to sell 1,000 units of its product each month at a price of £200 per month. It actually only manages to sell 950 units in the first month. It has a revenue variance for that month of

(Select one answer)


(a) * + £10,000 Unfavourable
(b) * + £10,000 Favourable
(c) * - £10,000 Favourable
(d) * - £10,000 Unfavourable


Source: bized


Q7. A firm sells its product for £100 each. In a particular month it sold 10,000 units. It then increased its price to £105 and sales fell to 9,000 units per month. The sales revenue that the firm earned changed by

(Select one answer)


(a) * + £945,000
(b) * - £945,000
(c) * - £55,000
(d) * + £55,000


Source: bized


Q8. A firm sells its product for £100 each. In a particular month it sold 10,000 units. It then increased its price to £105 and sales fell to 9,000 units per month. The price elasticity of demand for the product is

(Select one answer)


(a) * - 0.5
(b) * + 0.5
(c) * + 2
(d) * - 2


Source: bized


Q9. A company buys and sells CD and DVD players. In a month it bought 200 DVD machines at a price of £80 each and sold 140 at a price of £150 each. 50% of its purchases and 75% of its sales were on credit. These were the only transactions for the firm for the month. How much profit / loss did the firm make?

(Select one answer)


(a) * Loss of £5,000
(b) * £9,800
(c) * Loss of £5,000
(d) * £5,000


Source: bized


Q10. A company buys and sells CD and DVD players. In a month it bought 200 DVD machines at a price of £80 each and sold 140 at a price of £150 each. 50% of its purchases and 75% of its sales were on credit. These were the only transactions for the firm for the month. What effect did this have in the cash position of the business?

(Select one answer)


(a) * + £5,000
(b) * - £5,000
(c) * + £2,750
(d) * - £2,750


Source: bized


Q11. All of the following are fixed assets except

(Select one answer)


(a) * buildings.
(b) * stock.
(c) * production plant.
(d) * vehicles.


Source: bized


Q12. The following are examples of variable costs except

(Select one answer)


(a) * raw materials.
(b) * directors salaries.
(c) * packing materials.
(d) * commission payments.


Source: bized


Q13. A company has sold a product for many years. Last year, it sold 120,000 units at a price of £25 per unit. This year it increased sales to 135,000, having left its price unchanged. The real income of the buyers had increased by 5%, however. It follows from the above that the product is

(Select one answer)


(a) * a normal good with an income elasticity of + 2.5
(b) * a normal good with an income elasticity of + 0.4
(c) * an inferior good with an income elasticity of + 0.4
(d) * an inferior good with an income elasticity of + 2.5


Source: bized


Q14. A company buys and sells CD and DVD players. In a month it bought 200 DVD machines at a price of £80 each and sold 140 at a price of £150 each. 50% of its purchases and 75% of its sales were on credit. These were the only transactions for the firm for the month. What effect did this have on the level of creditors that the business had?

(Select one answer)


(a) * - £16,000
(b) * - £8,000
(c) * + £8,000
(d) * + £16,000


Source: bized


Q15. One difference between an ordinary share and a preference share is that

(Select one answer)


(a) * dividends on ordinary shares have to be paid.
(b) * ordinary shares are a loan and have to be repaid on demand.
(c) * The ordinary share gives the owner the right to one vote at an AGM.
(d) * In the event of a firm going into liquidation, ordinary shares are paid back first.


Source: bized


Click to view your total score for all the above questions that you have attempted.

Comments

Popular posts from this blog

Interactive Worksheet: The Accounting Equation

by Ken Delaney-Moore, Sheffield Hallam University Aims: This worksheet deals with: The accounting equation. The accounting concepts of 'business entity' and 'dual aspect'. The effects of transactions on the balance sheet. After having completed the worksheet you should be better able to perform to syllabus specifications relating to these points. When you are done, please fill-in the on-line evaluation form in order for us to monitor the quality of the materials we provide for you. Tell us what we're doing right and wrong. It takes very little time, and your opinions are valued - thank you. A business start-up Imagine that 'Jim Sayers' puts £5,000 of his personal savings into a business bank accoun...

MEMBUAT DATABASE APLIKASI AKUNTANSI DENGAN MICROSOFT ACCESS 2007

Microsoft Office Access 2007 merupakan aplikasi pembuatan database yang diciptakan Raksasa Microsoft Corporation, Hingga saat ini banyak sekali perusahaan menggunakan aplikasi ini dalam membuat database untuk keperluan bisnisnya, baik dengan menggunakan 100% access, maupun dengan memanfaatkan enginenya dan menggabungkan dengan aplikasi visual lainnya seperti Visual Basic, dsb. Access 2007 merupakan dipenyempurnaan dari access 2003. Berikut ini kita akan mencoba membuat database sederhana untuk keperluan akuntansi. Untuk membuat aplikasi database akuntansi tentu diperlukan banyak tabel, query, dan report yang harus dipersiapkan. Apalagi jika akuntansi untuk perusahaan dagang, dan manufaktur. Untuk lebih memudahkan bagi pemula yang ingin belajar membuat aplikasi dengan menggunakan Microsoft office access 2007, maka disini saya akan mencoba membahas aplikasi database akuntansi sederhana untuk perusahaan jasa. dalam menyusun suatu database tentu sebelumnya kita harus menyusun normalisas...

The Current Ratio

The Current Ratio The current ratio is also known as the working capital ratio and is normally presented as a real ratio. That is, the working capital ratio looks like this: Current Assets: Current Liabilities = x: y eg 1.75: 1 The Carphone Warehouse is our business of choice, so here is the information to help us work out its current ratio. Consolidated Balance Sheet 31 March 2001 25 March 2000 £'000 £'000 Total Current Assets 315,528 171,160 Creditors: Amounts falling due within one year 222,348 173,820 As we saw in the brief review of accounts section with Tesco's financial statements, the phrase current liabilities is the same as Creditors: Amounts falling due within one year . Here's the table to fill in. OK, so we've done this one for you! Current Ratio For the Carphone Warehouse 31 March 2001 Current Assets: Current Liabilities 315,528: 222,348 1.42: 1 25 March 2000 Current Assets: Current Liabilities 171,160: 173,820 0.98: 1 Math...