Accounting Multiple Choice Question – 29 December 2022

EMS Ltd has a first profit for the year of £20,000 in its draft financial statements.

Capital receipts of £5,000 have been treated as revenue receipts.

Capital expenditure of £4,000 has been treated as revenue expenditure.

What is the correct profit for the year figure?

Select ONE answer:

1. £11,000
2. £19,000
3. £21,000
4. £29,000

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 2

1. Not correct
2. Correct = £20K – £5K + £4K
3. Not correct
4. Not correct

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