Accounting Multiple Choice Question – 3 June 2023

A business prepares its accounts to 31 December. Insurance premiums paid were:

• date paid January 2021 – paid for 6 months to 31 December 2005 £940
• date paid July 2021 – paid for 6 months to 30 June 2006 £1,120
• date paid January 2022 – paid for 6 months to 31 December 2006 £1,245
• date paid March 2022 – paid for 6 months to 30 June 2007 – £1,880

Which amount should be shown in the profit and loss account for the year ended 31 December 2021?

Select ONE answer:

1. £1,120
2. £2,060
3. £2,365
4. £3,305

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 – £1,120 + £1,245
4. Not correct

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