Accounting Multiple Choice Question – 28 April 2019

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

The cost incurred by a firm of bringing goods to a merchantable condition should be included in…?

Select ONE answer:

  1. its trading account.
  2. its profit and loss account.
  3. its balance sheet.
  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 1

  1. Correct – The cost of bringing goods to a merchantable condition is a cost of sale, which is matched (offset) against the sales figure in the trading account.

 

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