Accounting Multiple Choice Question – 30 May 2019

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

A bank overdraft…?

Select ONE answer:

  1. is an asset.
  2. can exist on either a deposit account or a current account.
  3. means that more money has been paid out of a bank current account than has been lodged into it.
  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. A bank overdraft is a liability.
  2. A bank overdraft cannot exist on a deposit account.
  3. Correct
  4. Not correct

 

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