Month: September 2022

Accounting Multiple Choice Question – 10 September 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
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A business uses the straight line method to provide for depreciation of equipment.

Why should it continue to use this method in subsequent years?

Select ONE answer:

  1. accounting principles never allow accounting methods to be changed
  2. other methods of depreciation are unsuitable for depreciating equipment
  3. to ensure that profits are stated on a consistent basis over time
  4. to ensure that the Balance Sheet always shows the market value for equipment

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

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Accounting Multiple Choice Question – 9 September 2022

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

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On 30 September 2015 a business’s current assets totalled £28,000. The next day only two transactions took place.

  • Inventory bought for cash. The list price of £2,000 was subject to a trade discount of 20% and a cash discount of 5%. Payment was made immediately.
  • A bad debt of £400 was written off.

What was the total of current assets on 2 October 2015?

Select ONE answer:

  1. £27,680
  2. £28,080
  3. £29,520
  4. £29,600

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 – £2,000 *0.8 = £1,600 * 0.95 = £1,520 ==> £28,000 – £1,520 + £1,600 – £400
  2. Not 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 – 8 September 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 information is taken from the paperclip account of a business.

  • stock of paperclips at beginning of the year – £600
  • cash paid for paperclips during the year – £7,000
  • invoice not yet received for paperclips – £480
  • stock of paperclips at end of year – £800

How much should be debited to the Profit and Loss Account for paperclips?

Select ONE answer:

  1. £6,680
  2. £6,800
  3. £7,280
  4. £8,080

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 – £7,000 + £600 +£480 – £800
  4. Not correct

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

Accounting Multiple Choice Question – 7 September 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 accounting year end of a business is 31 October.

On 1 April the business rents out part of its warehouse for an annual rent of £6,000 receivable in equal instalments on 1 April, 1 July, 1 October and 1 January.

At 31 October what would the final accounts show?

Select ONE answer:

  1. Profit and Loss Account £ rental income 3,500 / Balance Sheet £ current asset 1,000
  2. Profit and Loss Account £ rental income 3,500 / Balance Sheet £ current liability 1,000
  3. Profit and Loss Account £ rental income 4,500 / Balance Sheet £ current liability 1,000
  4. Profit and Loss Account £ rental income 6,000 / Balance Sheet £ current asset 1,500

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 – April £1,500 + July £1,500 + October (£1,500 / 3) ==> therefore October payment Dr Bank £1,500 Cr Rental Income £500 & Current Liability £1,000
  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 – 6 September 2022

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

Photo by Pixabay on Pexels.com

Which item below should be treated as capital expenditure?

Select ONE answer:

  1. the cost of a new printer for an existing computer system
  2. repair costs to a car which are not covered by insurance
  3. rent paid on a factory, whilst the company negotiated the purchase of the factory
  4. the replacement of a wooden fence with a new fence

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
  2. Not correct
  3. Not correct
  4. Not correct

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