Accounting Multiple Choice Question – 5 September 2019

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

A person is not obliged to register for VAT unless he has reason to believe that the total taxable turnover of his business activities will exceed, or has exceeded, the current registration limits . . .

Select ONE answer:

  1. in any continuous twelve-month period.
  2. in the next three-month VAT period.
  3. in the twelve months ended on the previous 31 December.
  4. in the most recent two-month VAT period.

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 VAT registration limits apply to any continuous twelve-month period.
  2. Incorrect – The only significance of a two-month period in relation to VAT is that this is the period for which most businesses make a VAT return.
  3. Incorrect – 31 December, although the end of many firm’s accounting period, has no particular significance in relation to VAT for many businesses.
  4. Incorrect – As for answer B above.

 

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