Accounting Multiple Choice Question – 6 October 2017

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

Accounting

The following information was provided by a sole trader for the year ended 31 December 2015.

Table 09

 

What was the business’s profit or loss for 2015?

Select ONE answer:

  1. Loss £8,000
  2. Loss £14,000
  3. Loss £11,000
  4. Profit £8,000
  5. Profit £14,000

Show your workings to arrive at your answer, and explain and justify your reasons?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – The calculation is as follows: Capital at 31 December 2015 is £29,000 + Drawings of £11,000 making a total of £40,000. Subtract the Capital 1 January 2015 of £32,000 implies that a profit of £8,000 was made by the business in 2015.

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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