Accounting Multiple Choice Question – 8 April 2020

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

Accounting

A firm‘s capital at the beginning of a year was £16,500 and its capital at the end of the same year was £11,350.

The proprietor‘s drawings during the year totalled £3,300 and no new capital was introduced.

The firm‘s profit or loss for the year was?

Select ONE answer:

  1. Loss of £1,850
  2. Profit of £1,850
  3. Loss of £8,450
  4. Profit of £8,450

 

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 – Opening capital + Profit (-loss) – Drawings = Closing capital.  Therefore £16,500 + profit or loss – £3,300 = £11,350.  Therefore, loss = £1,850
  2. Not correct
  3. Not correct
  4. Not correct

 

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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