Day: July 9, 2022

The accounting year end for a company is 31 October.

The company’s telephone bill received on 5 December for the three months ended 30 November was:

• telephone calls to 30 November – £1,041
• rental of equipment for the period from 1 September to 30 November – £156
• total telephone bill – £1,197

What accrual should the company make in the accounts for the year ended 31 October?

Select ONE answer:

1. £503
2. £798
3. £1,093
4. £1,197

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 ==> £1,197 / 3 then multiplied by 2 for September & October
3. Not correct
4. Not correct

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