Month: February 2019

The correct heading for the balance sheet of Conspicuous Ltd at the end of December 2018 is “Balance Sheet of Conspicuous Ltd ……….. ?

Select ONE answer:

1. for the period ended 31 December 2018
2. for the year ended 31 December 2018
3. as at 31 December 2018
4. as at December 2018

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
1 – a balance sheet shows the financial position of an entity at a particular point of time/date not over a period of time
2 – a balance sheet shows the financial position of an entity at a particular point of time/date not over a period of time
4 – a balance sheet shows the financial position of an entity at a particular point of time/date not over a period of time

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A balance sheet is ……….. ?

Select ONE answer:

1. a ledger account, proving the accounting records “balance”
2. a statement showing the market value of a firm
3. a listing, in a particular format, of the balances brought down remaining in the double-entry accounts after the profit and loss account has been prepared
4. a statement showing the market value of assets and liabilities

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
1 – a balance sheet is not a ledger account
2 – a balance sheet does not show the market value of a firm
4 – A balance sheet does not show the market value of individual assets or liabilities

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

The following information relates to a business’s trading during the month of July.

• Gross profit for the month – £100,000
• Expenses for the month – £50,000
• Net profit for the month – equals 15% of the sales for the month

The business’s Cost of Sales for the month of July is?

Select ONE answer:

1. £233,333
2. £200,000
3. £133,333
4. £100,000

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 1
Net profit = Gross profit – Expenses = £100,000 – £50,000 = £50,000
£50,000 = 15% of sales
Therefore, Sales = £50,000 / 15 * 100 = £333,333
Cost of Sales = Sales – Gross Profit = £333,333 – £100,000 = £233,333

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