Accounting Multiple Choice Question – 20 February 2019

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

On 1 January, a sole trader had capital of £22,000. During the year, he withdrew £23,000 for his own use and, at 31 December, he had capital of £31,000. If he did not introduce any new capital during the year, his net profit for the year was?

Select ONE answer:

  1. £17,000
  2. £23,000
  3. £29,000
  4. £32,000

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 4

  • As no capital has been introduced during the year, Capital at 31 December = Capital at 1 January + Net profit for the year – Drawings during the year. Therefore, Net profit for the year = Capital at 31 December – Capital at 1 January + Drawings during the year i.e. £31,000 – £22,000 + £23,000 = £32,000

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

Accounting Multiple Choice Question – 19 February 2019

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

On 1 January, a sole trader had capital of £25,000. During the year, he withdrew £23,000 for his own use and, at 31 December, he had capital of £31,000. If he did not introduce any new capital during the year, his net profit for the year was?

Select ONE answer:

  1. £17,000
  2. £23,000
  3. £29,000
  4. £32,000

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

  • As no capital has been introduced during the year, Capital at 31 December = Capital at 1 January + Net profit for the year – Drawings during the year. Therefore, Net profit for the year = Capital at 31 December – Capital at 1 January + Drawings during the year i.e. £31,000 – £25,000 + £23,000 = £29,000

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

Accounting Multiple Choice Question – 18 February 2019

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

A sole trader’s capital at any particular date is equal to ……….. ?

A firm which sells exclusively on credit has the four current assets listed below. Which of the lists shows these assets in decreasing order of liquidity i.e. starting on the left with the most liquid (most readily convertible into cash) of the four and ending on the right with the least liquid (least readily convertible into cash)?

Select ONE answer:

  1. Cash, Stock, Debtors, Money in a bank current account
  2. Money in a bank current account, Cash, Debtors, Stock
  3. Cash, Money in a bank current account, Stock, Debtors
  4. Cash, Money in a bank current account, Debtors, Stock

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

  • If a firm is selling exclusively on credit, its stock will be sold on credit, thus becoming debtors. When money is received from debtors, it will be lodged, thereby increasing the bank balance. Cash, by definition, is the most liquid asset.

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

Accounting Multiple Choice Question – 17 February 2019

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

A sole trader’s capital at any particular date is equal to ……….. ?

Select ONE answer:

  1. the sum of his fixed assets plus his current assets at that date.
  2. the total of his fixed assets at that date.
  3. the total of his net assets at that date plus the total amount of capital he has introduced.
  4. the total of his net assets at that date.

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

  • In accordance with the accounting equation, Capital (at any particular date) = Assets (at that date) – Liabilities (at that date). Given that Assets less Liabilities also equals Net Assets, Capital (Assets – Liabilities) must also equal Net Assets.

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

Accounting Multiple Choice Question – 16 February 2019

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

Which of the following summarised balance sheets (statement of financial position) is correct?

Table 49

Select ONE answer:

  1. Business 1
  2. Business 2
  3. Business 3
  4. Business 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

  • In accordance with the accounting question, Capital = Assets – Liabilities. The Balance Sheet of Business 3 is the only one where the figure for Capital equals the difference between the total of the assets and the total of the liabilities.
  • £719 = (£2,781 + £812) – (£950 + £1,924)

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

Accounting Multiple Choice Question – 15 February 2019

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

Which of the following summarised balance sheets (statement of financial position) is correct?

Table 48

Select ONE answer:

  1. Business 1
  2. Business 2
  3. Business 3
  4. Business 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 3

  • In accordance with the accounting question, Capital = Assets – Liabilities. The Balance Sheet of Business 3 is the only one where the figure for Capital equals the difference between the total of the assets and the total of the liabilities.
  • £1,068 = (£1,100 + £440) – (£472 + £NIL)

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

Accounting Multiple Choice Question – 14 February 2019

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

Which of the following summarised balance sheets (statement of financial position) is correct?

Table 47

Select ONE answer:

  1. Business 1
  2. Business 2
  3. Business 3
  4. Business 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 2

  • In accordance with the accounting question, Capital = Assets – Liabilities. The Balance Sheet of Business 2 is the only one where the figure for Capital equals the difference between the total of the assets and the total of the liabilities.
  • £2,000 = (£9,456 + £2,398) – (£8,354 + £1,500)

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