Accounting Multiple Choice Question – 8 August 2022

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

Extracts from the Balance Sheets of a company show:

                      at 30 September 2004 £    at 30 September 2005 £

  • financed by:
  • issued share capital 10 000 15 000
  • share premium account – 2 500
  • revaluation reserve 500 800
  • Profit and Loss Account 3 500 4 200
  • debentures 2 000 1 500
  • Net Assets 16 000 24 000

What is the net cash movement from “Financing” for the year ended 30 September 2005?

Select ONE answer:

  1. £7 000
  2. £7 300
  3. £7 500
  4. £8 000

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 ==> (15,000 – 10,000) + (2,500 – 0) + (1,500 – 2,000)
  2. Not correct
  3. Not correct
  4. Not correct

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