Accounting Multiple Choice Question – 9 September 2018

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

Which one of the following statements is correct?

Select ONE answer:

  1. To record an increase in any given asset account, then that account must be debited.
  2. To record a decrease in capital, the capital account must be credited.
  3. To record an increase in any given liability account then that account must be credited.
  4. To record a decrease in any given liability account then that account must be credited.

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 1 – The other three answers are incorrectly stated e.g. to record a decrease in capital, then the capital account must be debited.

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