Accounting Multiple Choice Question – 2 September 2021

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

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Alex Limited suffered a substantial uninsured loss of £60,000 when stock was stolen from its premises.

How will the loss be disclosed in the company’s published accounts? 

Select ONE answer:

  1. adjustment to reserves
  2. exceptional item
  3. extraordinary item
  4. prior year adjustment

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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