Month: June 2021

A trial balance does not balance.

The difference has been entered in a Suspense account. 

The following errors are found below.

What is the correcting debit entry to the Suspense account?

Select ONE answer:

1. £47,340
2. £95,010
3. £95,640
4. £97,560 

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 ==> £48,300 * 2 – £960 ==> No 3 is ignored as the debit is simply a reclassification manner
4. Not correct

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When preparing a bank reconciliation statement the following information is available. 

What is the balance on the bank statement?

Select ONE answer:

1. £18,600
2. £19,200
3. £20,800
4. £21,400

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 ==> £20,000 – £2,500 – £1,400 – £300
4. Not correct

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A company does not include the value of skills gained by its employees from training programmes in its financial statements. 

Which accounting principle is being applied?

Select ONE answer:

1. consistency
2. materiality
3. money measurement
4. substance over form

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.

When a businessman introduces capital into his business, the transaction is debited in the Cash Book and credited to his Capital account.

Of which accounting principle is this an example?

Select ONE answer:

1. entity
2. going concern
3. matching
4. prudence

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.

What does the ‘going concern’ principle mean?

Select ONE answer:

1. a business is profitable
2. a business will continue to operate for the foreseeable future
3. the assets of a business exceed its liabilities
4. the assets of a business should be valued at disposal value

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

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