Month: August 2020

Which error will be revealed by the preparation of a trial balance?

Select ONE answer:

1. an amount recorded twice as a debit entry
2. a capital expenditure item treated as revenue expenditure
3. a double entry made using an incorrect amount
4. a transaction completely omitted from the books

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
2. Not correct – error of principle
3. Not correct – error of wrong amount
4. Not correct – error of omission

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What is a trial balance?

Select ONE answer:

1. a list of balances in a business’s books on a certain date
2. a list of the assets, liabilities and capital of a business on a certain date
3. a summary of all a business’s transactions for the year
4. a summary of the financial position of a business at the year end

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
2. Not correct
3. Not correct
4. Not correct

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Which one of the choices below is part of the double entry system?

Select ONE answer:

1. cash book
2. general journal
3. sales journal
4. trial balance

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
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

A trader’s purchases on credit for August amounted to £20,000. These purchases were subject to a trade discount of 10% and also a cash discount of 5% for accounts paid within 30 days.

How much was entered in the purchases journal?

Select ONE answer:

1. £17,000
2. £18,000
3. £19,000
4. £20,000

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 – £20,000 * 0.9 = £18,000 (the value of the supplier invoices), The potential cash discount of £1,000 cannot at this stage be taken into account under the prudence concept / cost concept
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Lucy issued an invoice, a credit note and a receipt.

What has happened?

Select ONE answer:

1. Lucy purchased goods and paid the supplier immediately.
2. Lucy purchased goods on credit, made returns to the supplier and paid the balance due.
3. Lucy sold goods and received immediate payment from the customer.
4. Lucy sold goods on credit, received returns from the customer and received the balance due.

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 – accrual
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.