BS2091 Topics 4 & 5 Tutorial Quiz

A fire at your head office has destroyed many of the accounting records.  You know that your sales for the year were £825,000 and that the company applies a mark-up of 25%.  What will the Cost of Sales figure be?

• £700,000

• £689,000

• £660,000

• £618,750

• £206,250

Answer explanation

To find the Cost of Sales, divide the sales by 1 plus the mark-up percentage. Here, Cost of Sales = £825,000 / 1.25 = £660,000. Thus, the correct answer is £660,000.

You are the management accountant for a contract based in Bahrain.  You must pay a local subcontractor 250,000 Bahraini Dinars (BHD).  At a rate of £1 = BHD 0.603, how much will this cost you in £’s?

• £414,594

• £400,000

• £150,750

• £145,067

• £84,355

Answer explanation

To convert 250,000 BHD to GBP, divide by the exchange rate: 250,000 / 0.603 = £414,594. Thus, the cost in £’s is £414,594.

You are attending a board meeting to appoint your auditors. At least 2/3 of the 40 members must vote in favour for it to go ahead.  What is the greatest number of members who could vote against the appointment of a specific auditor and for them to still be appointed?

• 12

• 13

• 14

• 15

• 16

Answer explanation

To appoint the auditor, at least 27 members (2/3 of 40) must vote in favor. If 13 vote against, then 27 can still vote in favor (40 - 13 = 27). Thus, the greatest number who could vote against is 13.

You are an accountant at a drinks bottle manufacturer.  There are currently 6 identical machines which can produce a total of 270 bottles per minute.  You are considering buying a further 4 of these machines.  How many bottles could 10 such machines produce in 4 minutes?

• 648

• 1,800

• 2,700

• 10,800

• 64,800

Answer explanation

With 10 machines, the production rate is 450 bottles per minute (270 bottles/6 machines * 10 machines). In 4 minutes, they produce 450 * 4 = 1,800 bottles. Thus, the correct answer is 1,800.

On 31/12/23 your company share price was 108p.  This is 40% lower than a year earlier.  What was the share price on 31/12/22?

• 43.3p

• 151.2p

• 165.7p

• 180.0p

• 196.4p

Answer explanation

If the share price on 31/12/23 is 108p, which is 40% lower than the previous year, we can calculate the original price. Let x be the price on 31/12/22. Then, 108 = x - 0.4x = 0.6x. Solving gives x = 180p.

You are working as a manager for an agriculture company which owns two plots.  In plot 1, 200 seeds were planted and 57% germinated. In plot 2, 300 seeds were planted and 42% germinated.  What % of the total seeds planted germinated?

• 45.5%

• 46.5%

• 48.0%

• 49.5%

• 51.0%

Answer explanation

In plot 1, 200 seeds with 57% germination yield 114 germinated seeds. In plot 2, 300 seeds with 42% germination yield 126 germinated seeds. Total seeds planted = 500, total germinated = 240. Thus, (240/500) * 100 = 48.0%.

You are deciding on which special offers to implement in your stores.  You normally sell scooters for £40 each but these are currently on offer as two scooters for £75.  What is the % reduction in the price of two scooters purchased at sale price?

• 2.5%

• 6.25%

• 6.67%

• 8.0%

• 12.5%

Answer explanation

The normal price for two scooters is £80 (£40 each). The sale price is £75. The reduction is £5. The percentage reduction is (5/80) * 100 = 6.25%. Thus, the correct answer is 6.25%.

You are the sales manager for an electrical company.  You sell TVs at 20% above the wholesale cost of £200.  The store gives employees a 10% discount on the retail price.  How much do you charge an employee for a TV?

• £198

• £216

• £220

• £230

• £240

Answer explanation

The retail price is £200 + 20% = £240. The employee discount is 10% of £240, which is £24. Therefore, the price charged to the employee is £240 - £24 = £216.

A company has the following shares in issue: 

10,000,000 ordinary ‘A’ shares

6,000,000 ordinary ‘B’ shares

A significant shareholder holds 2/5 of the ‘A’ shares and 4/6 of the ‘B’ shares.  How much, as a percentage, does this shareholder hold of the total shares in issue?

• 25%

• 33%

• 50%

• 54%

• 70%

Answer explanation

The shareholder holds 2/5 of 10,000,000 'A' shares (4,000,000) and 4/6 of 6,000,000 'B' shares (4,000,000). Total shares held = 4,000,000 + 4,000,000 = 8,000,000. Total shares in issue = 16,000,000. Percentage = (8,000,000 / 16,000,000) * 100 = 50%.

Duncan, Gordon and Iain are in a partnership and agree to share their partnership profits in a ratio of 5:4:3 respectively.  If this partnership makes a profit of £72,000 in 2023, how much profit will Gordon receive in 2023?

• £18,000

• £24,000

• £28,800

• £30,000

• £35,000

Answer explanation

The total parts in the profit sharing ratio (5+4+3) = 12. Gordon's share is 4 parts. His profit = (4/12) * £72,000 = £24,000.