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.

Accounting
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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

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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