Accounting Multiple Choice Question – 9 May 2019

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

The effect of the accruals concept is that …?

Select ONE answer:

  1. similar items should be accounted for in a similar way from one accounting period to the next.
  2. revenue and profit should not be anticipated.
  3. net profit is the difference between revenues and expenses.
  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

  1. is the consistency concept.
  2. is one aspect of the prudence concept. The other aspect is that losses should be provided for as soon as they are foreseen.
  3. Correct
  4. Not correct.

 

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