Month: July 2023

Accounting Multiple Choice Question – 31 July 2023

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

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A trial balance at 30 June, before making end of year adjustments, showed:

  • Debit – trade debtors £35,600
  • Credit – provision for doubtful debts £1,160

At 30 June, it was decided to write off a bad debt of £1,600 and to make a provision for doubtful debts equal to 2 % of trade debtors.

What was the total expense in the profit and loss account for bad and doubtful debts for the year ended 30 June?

Select ONE answer:

  1. £680
  2. £1,120
  3. £2,080
  4. £2,280

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 – -> £1,600 – (£1,160 – £680)
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 30 July 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 table gives information relating to the fixed assets of a business.

  • net book value at the end of the year – £25k
  • net book value at the beginning of the year – £16k
  • depreciation charge for the year – £5k
  • additions at cost during the year – £22k

What is the net book value of disposals during the year?

Select ONE answer:

  1. £8k
  2. £11k
  3. £18k
  4. £22k

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 – £25k + £5K – £22k
  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 – 29 July 2023

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

Rent is paid by a business monthly in advance on the first day of each month.

The payments during this financial year have been as follows:

  • up to and including 1 June £500 per month
  • from 1 July thereafter £600 per month

Which amount(s) will appear in the accounts for the year ended 31 October?

Select ONE answer:

  1. Profit and Loss Expense – £6,400 and SOFP – £600 prepayment
  2. Profit and Loss Expense – £6,400 and SOFP – £600 accrual
  3. Profit and Loss Expense – £6,400 and SOFP – NIL
  4. Profit and Loss Expense – £7,000 and SOFP – NIL

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 – 8 months * £500 + 4 months * £600 – no SOFPT impact as paid in advance on the first day of the month.
  4. Not correct

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

Accounting Multiple Choice Question – 28 July 2023

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

When is it necessary to distinguish between revenue and capital expenditure?

Select ONE answer:

  1. when preparing cash budgets
  2. when preparing investment appraisal calculations
  3. when preparing profit and loss accounts
  4. when preparing purchase ledger control accounts

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

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

Accounting Multiple Choice Question – 27 July 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

Discounting methods have been used to evaluate an investment project over a three year life.

The project will produce annual net inflows of £2M.

£500,000 of the initial investment can be recovered at the end of the third year.

Discount factors at 10 % are:

  • Year 1 – factor 0.91
  • Year 2 – factor 0.83
  • Year 3 – factor 0.75

What is the present value of project cash inflows?

Select ONE answer:

  1. £4.98M
  2. £5.36M
  3. £5.48M
  4. £6.38M

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 – Y1 £2M * 0.91 = £1.82M + Y2 £2M * 0.83 = £1.66M + Y3 £2M * 0.75 = £1.5M + IV £0.5M * 0.75 = £0.375M == > £5.36M
  3. Not correct
  4. Not correct

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