Month: July 2022

Under which heading should negative Goodwill be included in a company’s Balance Sheet?

Select ONE answer:

1. capital reserves
2. intangible fixed assets
3. revenue reserves
4. share capital

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.

Which items are included in prime cost?

1. royalties on goods produced
2. closing stock of work in progress
3. depreciation of factory equipment
4. opening stock of raw materials

Select ONE answer:

1. 1, 3 and 4 only
2. 1 and 4 only
3. 2, 3 and 4 only
4. 3 and 4 only

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.

A business provides information:

• opening creditors – £20 000
• cash paid to creditors – £110 000
• purchases on credit – £120 000
• balances set-off against sales ledger – £2000
• discount received – £3000

What is the closing creditors balance?

Select ONE answer:

1. £25 000
2. £29 000
3. £30 000
4. £31 000

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 1

1. Correct = 20,000 +120,000 – 110,000 – 2,000 – 3,000
2. Not correct
3. Not correct
4. Not correct

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

The following errors in the accounting records have been found and corrected:

1. a purchase invoice for £250 was omitted from the books of account
2. a sale for £120 to X was debited to the account of Y
3. the sales day book was over-added by £100

The gross profit for the year before correcting the errors was £60 200.

What is the correct gross profit for the year?

Select ONE answer:

1. £59 850
2. £59 970
3. £60 350
4. £60 550

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 = £60,200 – £250 – £100
2. Not correct
3. Not correct
4. Not correct

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