Accounting Multiple Choice Question – 2 September 2020

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

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Alex depreciates his buildings at the rate of 2% per annum using the straight line method.

He bought land for £200,000. It cost Alex £120,000 to build a warehouse on it. After five years, Alex sold the warehouse for £299,000.

What was the profit or loss on disposal?

Select ONE answer:

  1. £9,000 loss
  2. £9,000 profit
  3. £12,000 loss
  4. £12,000 profit

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 – £200k + £120k = £320k – (5 years * £2.4k p.a.) – £299k = £9 loss
  2. Not correct
  3. Not correct
  4. Not correct

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