Accounting Multiple Choice Question – 2 September 2019

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

Value Added Tax . . .

Select ONE answer:

  1. is paid by the purchaser of goods and services, at the relevant rate, on the value added to them by their seller.
  2. is collected by the HMRC on behalf of the government as value is added to goods and services.
  3. is charged at the relevant rate by the sellers of goods and services on the value added by them.
  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 2

  1. Incorrect – A VAT is paid by the purchaser of goods and services on the full price, excluding VAT, of those goods and services.
  2. Correct
  3. Incorrect – VAT is charged by vendors of goods and services on the full price, excluding VAT, of those goods and services.
  4. Incorrect

 

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