Accounting Multiple Choice Question – 24 September 2018

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

Accounting

In the case of a garage which deals with the public, which of the following double-entries is the correct way to record the payment, by cheque, of an electricity bill for the current accounting period ………..?

Select ONE answer:

  1. Account to Debit Bank / Account to Credit Electricity
  2. Account to Debit Electricity / Account to Credit Cash
  3. Account to Debit Electricity / Account to Credit Bank
  4. None of the above

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 – All expenses are recorded as debit entries in the relevant expense account and the bank balance is thus reduced as a result through a credit.

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Author: stuart001uk2014

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

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