Accounting Multiple Choice Question – 17 May 2020

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

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In the accounts of a limited company. debenture interest paid during the current accounting period, in respect of the same period . . .?

Select ONE answer:

  1. is part of the company’s cost of sales.
  2. is an expense.
  3. is an appropriation of profit.
  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. Not correct
  2. Correct – Debenture interest paid during the current accounting period, in respect of the same period is an expense, and. just like any other expense, is charged as an expense in the profit and loss account (in accordance with the accruals concept).
  3. Not correct
  4. Not correct

 

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