Accounting Multiple Choice Question – 11 January 2023

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

Accounting
Photo by Nataliya Vaitkevich on Pexels.com

Alex has not kept proper records for his business.

Between 31 December 2014 and 31 December 2015 his net assets had increased by £30,000.

On 1 January 2015, Alex brought into the business his private car which had cost £12,000, but now has a re-sale value of £8,000.

Drawings for the year ended 31 December 2015 were £16,000.

What was Alex’s profit for the year ended 31 December 2015?

Select ONE answer:

  1. £22,000
  2. £26,000
  3. £34,000
  4. £38,000

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct = £30k + £16k – £8k (Calculating Alex’s profit, which is the increase in net assets, £30 000, plus drawings, £16 000, less the value of the car when introduced, £8000 = £38 000.)

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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