Accounting Multiple Choice Question – 9 September 2019

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

If the total of sales, including VAT at the rate of 10%, amounts to £1,800, the total of sales excluding VAT amounts to:

Select ONE answer:

  1. £1,620
  2. £1,636
  3. £1,720
  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

Let Sales (excl. VAT) = 100%
Therefore, Sales (incl. VAT) = 110% = £1,800
Therefore, Sales excl. VAT (100%) = £1,800/ 110 * 100 = £1,636
Proof: £1,636 + 10% — £1,800

For exam purposes, you may find it quicker, and more foolproof, to do this question as follows:
Sales excluding VAT + 10% = £1,800

  1. Incorrect – £1,620 + 10% = £1,782
  2. Correct £1,636 + 10% = £1,800
  3. Incorrect £1,720 + 10% = £1,892
  4. incorrect

 

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