Accounting Multiple Choice Question – 12 August 2019

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

A £200 credit balance brought down in the cash columns of a firm’s cash book means that…?

Select ONE answer:

  1. the firm has spent £200 more cash than it has received.
  2. the firm has £200 cash in hand.
  3. a mistake has been made in the recording of cash.
  4. someone has stolen £200 cash.

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. Not correct
  2. Not correct
  3. Correct – A credit balance brought down on the cash columns of a firm’s cash book would indicate that the firm has a negative amount of cash. As this is clearly not possible, a mistake must have been made.
  4. Not correct

 

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