Accounting Multiple Choice Question – 31 October 2020

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

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A company’s accounts showed a gross profit for the year of £65,000.

After the accounts were prepared it was found that the opening stock had been overstated by £4,800 and the closing stock had been understated by £6,800.


What is the corrected gross profit for the year?

Select ONE answer:

  1. £53,400
  2. £63,000
  3. £67,000
  4. £76,600

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 – £65,000 + £4,800 + £6,800

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Accounting Multiple Choice Question – 30 October 2020

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

apple devices books business coffee
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Which of the following is a tangible fixed asset?

Select ONE answer:

  1. patents
  2. purchased Goodwill
  3. short leasehold
  4. trade marks

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

Accounting Multiple Choice Question – 29 October 2020

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

apple devices books business coffee
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The bookkeeper of a company has disappeared. There is no cash in the till and theft is suspected.

The following information is known:

  1. £1,500 – cash balance at beginning of period
  2. £300,000 – total sales during the period
  3. £11,000 – decrease in debtors during the period
  4. £192,000 receipts from debtors paid into the bank
  5. £10,000 – expenses paid from cash received 

How much has the bookkeeper stolen during the period?

Select ONE answer:

  1. £88,500
  2. £99,500
  3. £110,500
  4. £120,500

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 – £1,500 + £311,000 (£300k + £11k) – £192,000 – £10,000 = £110,500
  4. Not correct

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

Accounting Multiple Choice Question – 28 October 2020

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

apple devices books business coffee
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A vehicle was purchased with an original cost £60 000. The vehicle was later sold for £18,000 and the profit on disposal was £3,000.

What was the accumulated depreciation of the vehicle on disposal? 

Select ONE answer:

  1. £15,000
  2. £18,000
  3. £42,000
  4. £45,000

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – Original cost £60,000 – sale price £18,000 + profit on disposal £3,000

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

Accounting Multiple Choice Question – 27 October 2020

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A business’s Income Statement for 2019 showed insurance as £8,000. On 1 January insurance owing was £1,600.


On 31 December 2019 insurance paid in advance was £1,200.

What was the actual amount paid for insurance through the bank account for the year ended 31 December 2019?

Select ONE answer:

  1. £7,600
  2. £8,000
  3. £8,400
  4. £10,800

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 – Reversal of 2018 accrual is £1,600 + Income Statement of £8,000 + end of year prepayment of £1,200

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