Month: March 2021

Which of the following is a realised gain?

Select ONE answer:

1. a surplus on revaluation of trade investments to current market value
2. a surplus arising from a professional revaluation of the company office block
3. a surplus arising on the sale of patents
4. Goodwill arising on the purchase of another 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.

A business owner suspects a loss of cash has occurred. He provides the data shown below.

How much cash has been lost?

Select ONE answer:

1. £200
2. £250
3. £300
4. £350

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 ==> -£150 + £10,200 + £100 – £10,500 = -£350 loss

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

A bank reconciliation statement shows a credit balance of £400 in the Cash Book and a balance in hand of £100 in the bank statements. 

The bank reconciliation statement includes unpresented cheques of £700 in addition to cheques banked and not yet credited in the bank statements.

What is the total of cheques banked and not yet credited?

Select ONE answer:

1. £200
2. £400
3. £1,000
4. £1,200

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 – (£400) + £700 – £200 = £100
2. Not correct
3. Not correct
4. Not correct

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

A business has a draft net profit of £84,000.

It is discovered that the closing stock was overvalued by £4,000 and that discounts received of £1,500 were treated as an expense.

What is the corrected net profit?

Select ONE answer:

1. £81,500
2. £83,000
3. £89,500
4. £91,000

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 2

1. Not correct
2. Correct – £84k – £4k + (£1.5k *2)
3. Not correct
4. Not correct

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

A business omitted discounts allowed of £700 from its trial balance.

During the year a machine had been sold for cash of £500 but the only accounting entry made was a debit in the Bank account. 

What is the balance on the Suspense account? 

Select ONE answer:

1. £200 debit
2. £1,200 debit
3. £200 credit
4. £1,200 credit 

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

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