Lesson 5.13.1

5.13.1 External influences on accounting and finance Quiz: OCR Business, Unit 5

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 5.13.1, External influences on accounting and finance: 20 multiple choice questions for the OCR Business (H431), Unit 5: Accounting and finance, written with Revision Ninja.

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The 20 questions

  1. Which UK legislation requires public limited companies to publish audited annual accounts?

    • Data Protection Act
    • Companies Act
    • Consumer Rights Act
    • Equality Act

  2. Which global organisation sets International Financial Reporting Standards used by UK listed firms?

    • ACCA
    • HMRC
    • FCA
    • IASB

  3. What tax is levied on the profits made by UK limited companies?

    • Value added tax
    • Income tax
    • Corporation tax
    • Capital gains tax

  4. Which UK government department is responsible for collecting tax revenues?

    • Bank of England
    • HM Treasury
    • HMRC
    • Companies House

  5. What financial statement adjustments are required when general price levels rise persistently?

    • Cash flow forecasting
    • Ratio analysis
    • Inflation accounting
    • Break-even analysis

  6. What is the main effect of a Bank of England base rate increase on borrowing costs?

    • Interest rates rise
    • Interest rates fall
    • Tax rates rise
    • Inflation falls immediately

  7. Which statutory body receives annual accounts filed by UK registered companies?

    • HM Treasury
    • Companies House
    • London Stock Exchange
    • Bank of England

  8. What accounting term describes rules that ensure consistency and comparability in financial reporting?

    • Budgetary controls
    • Accounting standards
    • Auditing principles
    • Tax allowances

  9. A UK firm exports goods to the USA. How does a weakening Pound affect export competitiveness?

    • Eliminates profit margin
    • Decreases competitiveness
    • Increases competitiveness
    • Has no effect

  10. A business buys equipment for £50,000. Which government tax relief reduces its taxable profit?

    • Dividend allowance
    • VAT refund
    • Business rate relief
    • Capital allowance

  11. If the UK VAT standard rate increases from 20% to 22%, how are cash sales affected?

    • Gross margin increases
    • Cash inflows rise
    • Net profit doubles
    • Cash inflows fall

  12. A rise in UK inflation causes supplier raw material prices to increase. What happens to gross profit?

    • Gross profit falls
    • Gross profit unchanged
    • Gross profit rises
    • Gross profit doubles

  13. An increase in central bank interest rates increases a business's loan repayments. What is affected?

    • Gross profit margin
    • Corporation tax rate
    • Dividend yield
    • Net profit margin

  14. A UK importer purchases components from Europe in Euros. If the Euro strengthens, what happens to unit costs?

    • Unit costs fall
    • Unit costs double
    • Unit costs rise
    • Unit costs unchanged

  15. Ethical investors demand transparent sustainability reporting. Which document satisfies this requirement?

    • ESG report
    • Bank statement
    • Trial balance
    • Cash flow statement

  16. During an economic recession, consumer demand drops. What is the immediate financial impact on revenue?

    • Fixed costs fall
    • Sales revenue falls
    • Tax liability rises
    • Sales revenue rises

  17. Why might a PLC adopt IFRS standards rather than UK GAAP?

    • Attract foreign investors
    • Eliminate statutory audits
    • Avoid corporation tax
    • Reduce interest payments

  18. How does high inflation distort historical cost accounting in financial statements?

    • Understates tax paid
    • Overstates liabilities
    • Overstates cash balances
    • Understates asset values

  19. If the government cuts corporation tax from 25% to 19%, what is the impact on retained profit?

    • Retained profit increases
    • Operating profit decreases
    • Retained profit decreases
    • Gross profit increases

  20. Which type of government policy uses taxation and public spending to influence the economy?

    • Protectionist policy
    • Fiscal policy
    • Monetary policy
    • Supply-side policy

All OCR Business quizzes