Month: September 2020

Lucy and Alex are in partnership, sharing profits and losses equally. Interest on capital account balances is to be allowed at 5%.

The capital account balances at the start of the year were: Lucy – £10,000; Alex – £20,000.

The profit for the year was £28,000.

How much was credited to Lucy’s current account at the end of the year?

Select ONE answer:

1. £13,250
2. £13,750
3. £14,000
4. £14,250

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
3. Not correct
4. Not correct

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Which should be entered in the appropriation account of a partnership?

Select ONE answer:

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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How is capital employed calculated?

Select ONE answer:

1. current assets – current liabilities
2. non-current assets + current assets
3. owner’s capital + non-current liabilities
4. owner’s capital + total liabilities

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

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Which statement below is correct?

Select ONE answer:

1. cost of goods sold – gross profit – sales returns = revenue
2. cost of goods sold – gross profit + sales returns = revenue
3. cost of goods sold + gross profit – sales returns = revenue
4. cost of goods sold + gross profit + sales returns = revenue

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
2. Not correct
3. Not correct
4. Correct

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Which one of the group of businesses listed below contains only trading businesses?

Select ONE answer:

1. driving school, motor insurance agency, vehicle repair business
2. driving school, motor insurance agency, petrol station
3. motor parts shop, vehicle repair business, car dealership
4. motor parts shop, petrol station, car dealership

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 – all service businesses
2. Not correct – mixed service & trading businesses
3. Not correct – mixed service & trading businesses
4. Correct

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