Month: August 2020

The following ledger account appeared in the books of a trader.

Select ONE answer:

1. rent payable outstanding
2. rent payable prepaid
3. rent receivable outstanding
4. rent receivable prepaid

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.

At the end of the financial year there was a debit balance brought down on the office expenses account.

In which section of the statement of financial position will this be recorded?

Select ONE answer:

1. capital
2. current assets
3. current liabilities
4. non-current assets

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 – prepayment
3. Not correct – that would be be a credit balance / accrual
4. Not correct

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

What are assets?

Select ONE answer:

1. items that are bought for long-term use by a business
2. items that are expected to be turned into cash in the near future
3. items that are owned by or owed by a business
4. items that are owned by or owed to a business 

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 – purchase returns
2. Correct
3. Not correct – purchase returns
4. Not correct – increases debt owed by Stuart

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

What are assets?

Select ONE answer:

1. items that are bought for long-term use by a business
2. items that are expected to be turned into cash in the near future
3. items that are owned by or owed by a business
4. items that are owned by or owed to a business 

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 4

1. Not correct – only non-current assets
2. Not correct – prepayments cannot be turned into cash
3. Not correct – includes creditors
4. Correct

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

What is the purpose of book-keeping?

Select ONE answer:

1. to interpret the double entry records
2. to prepare financial statements at regular intervals
3. to record all the financial transactions of the business
4. to summarise the financial position of the business

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 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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