Month: June 2023

Accounting Multiple Choice Question – 15 June 2023

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

Photo by Olya Kobruseva on Pexels.com

The owner of a business paid for his family’s holiday from the business bank account and recorded the payment as drawings.

Which accounting concept is being applied?

Select ONE answer:

  1. Accruals
  2. Business Entity
  3. Going concern
  4. Prudence

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
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 14 June 2023

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

Photo by Olya Kobruseva on Pexels.com

Alex plc buys items for resale at a cost of £15 per unit.

They are normally sold for £22.

A damaged unit can only be sold at the normal selling price after modifications costing £14 are made by Alex plc.

The scrap value of the item is £7 per unit.

How much should the damaged unit be valued at in the balance sheet?

Select ONE answer:

  1. £7
  2. £8
  3. £14
  4. £15

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 correc
  2. Correct – Lower of cost and NRV = = > Cost £15 vs NRV (£22 – £14) of £8
  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 – 13 June 2023

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

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The following information relates to the annual membership subscriptions of the Cannock Chase cricket club for the year ended 31 December 2022.

1 January
subscriptions in arrears – £7,200
subscriptions paid in advance – £2,800

31 December
subscriptions in arrears – £7,800
subscriptions paid in advance – £4,200

Cash received during the year for subscriptions totalled £81,000.

Which amount should be shown in the income and expenditure account for membership subscriptions for the cricket club?

Select ONE answer:

  1. £80,200
  2. £81,000
  3. £81,600
  4. £81,800

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 – £81,000 + (£7,800 – £7,200) + (£2,800 – £4,200)
  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 – 12 June 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

Alex plc sells goods at cost plus 25 %.

Information for a recent financial year is shown below.

  • Turnover – £240k
  • Opening stock – £42k
  • Closing stock – £48k

What is the total of purchases for the year?

Select ONE answer:

  1. £180k
  2. £186k
  3. £192k
  4. £198k

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 – £240k / 1.25 = £192k + (£48k – £42k)

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

Accounting Multiple Choice Question – 11 June 2023

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

Photo by Olya Kobruseva on Pexels.com

Partnership capitals is respectively £60K for Alex and £90k for Lucy.

The partnership agreement provides for interest on capital at 10% per annum, but makes no other financial provisions

Profits for the current year is shown as £75k in the Income Statement.

How will the total profits be divided between the partners Alex and Lucy?

Select ONE answer:

  1. Alex £30.0k and Lucy £45.0k
  2. Alex £36.0k and Lucy £39.0k
  3. Alex £37.5k and Lucy £37.5k
  4. Alex £39.0k and Lucy £36.0k

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 correc
  2. Correct – If a partnership agreement allows interest on capitals but makes no other financial provisions, then under the Partnership Act the balance of profits is shared equally by the partners. Therefore, £75k – £15k (£150k * 10%) = £60k / 2 = £30k each then Alex £30k = £6k = £36k and Lucy £30k + £9k = £39k
  3. Not correct
  4. Not correct

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