Accounting Multiple Choice Question – 14 February 2019

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

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)

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