Month: July 2022

Accounting Multiple Choice Question – 16 July 2022

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

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A company’s financial year ends on 31 December.

At 31 December Year 1 the company carried forward a debit balance of £36 200 on the Rent account.

During Year 2 payments made for 12 months’ rent, to 31 March Year 3, were £157 200.

What is the amount of rent to be charged against profit in the year ended 31 December Year 2?

Select ONE answer:

  1. £121 000
  2. £154 100
  3. £160 200
  4. £193 400

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 2

  1. Not correct
  2. Correct ==> £157,200 / 12 = £13,100 ==> Times 9 months for Year 2 portion = £117,900 ==> Add carried forward prepayment of £36,200 ==> £154,100
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 15 July 2022

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A company excludes from its Balance Sheet machinery for which spare parts are no longer obtainable.

Which concept is being applied by the company?

Select ONE answer:

  1. going concern
  2. materiality
  3. prudence
  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

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

Accounting Multiple Choice Question – 14 July 2022

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A business sells its freehold premises to a bank and agrees to repurchase them in five years’ time.

The business continues to use the premises on lease from the bank.

The premises remain in the balance sheet of the business.

What is the reason for this accounting treatment?

Select ONE answer:

  1. the asset must be treated in the same way from year to year
  2. the commercial reality of the transaction is that the business still owns the asset
  3. the cost of the asset must be matched with the periods expected to benefit from its use
  4. the income from the sales proceeds must not be anticipated

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

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

Accounting Multiple Choice Question – 13 July 2022

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A manufacturer has paid £3,000 for electricity from his private bank account.

The electricity charges are apportioned as follows:

  • factory – 50%
  • sales office – 10%
  • private – 40%

Which entries for electricity are necessary in the business accounts?

Select ONE answer:

  1. factory credit £1,000 / sales office credit £200 / capital account debit £1,200
  2. factory credit £1,500 / sales office credit £300 / capital account debit £1,800
  3. factory debit £1,000 / sales office debit £200 / capital account credit £1,200
  4. factory debit £1,500 / sales office debit £300 / capital account credit £1,800

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 – £3,000 * 0.5 = £1,800; £3,000 * 0.1 = £300 ==> Dr Electricity £1,800 Cr Capital £1,800

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

Accounting Multiple Choice Question – 12 July 2022

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

The following items of expenditure take place during the first month of a transport business.

  • rent – £1 000
  • insurance of building – £1 300
  • insurance of vehicle – £350
  • road tax – £500
  • purchase of vehicle – £15 000
  • number plate for vehicle – £150
  • painting of vehicle in company colours – £750
  • wages for lorry driver – £100
  • wages for painting vehicle – £150

What is the total capital expenditure?

Select ONE answer:

  1. £15 000
  2. £15 500
  3. £16 050
  4. £16 550

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 3

  1. Not correct
  2. Not correct
  3. Correct – £15,000 + £150 + £750 + £150
  4. Not correct

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