Accounting Multiple Choice Question – 10 September 2019

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

The amount of VAT included in goods costing £200, inclusive of VAT at the rate of 21%, is …

Select ONE answer:

  1. £31.50
  2. £34.71
  3. £42.00
  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 Cost = 100%
Cost + 21% = 121% = £200
VAT = 21% = £200/ 121 ” 21 = £34.71
Proof: £200 – £34.71 = £165.29 and £165.29 + 21% = £200

  1. Incorrect
  2. Correct
  3. Incorrect
  4. incorrect

 

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