Accounting Multiple Choice Question – 2 July 2023

The amount shown on the cash flow statement of Alex plc for 2022 as taxation paid amounts to £96,000.

The extract of the Income Statement for Alex plc for 2022 and 2021 is as follows:

• operating profit for the year – 2022 £350k and 2021 £336k
• provision for taxation – 2022 (£110k) and 2021 (£104k)
• profit after taxation – 2022 £240k and 2021 £232k

The liability for taxation at the 2021 year end was £100k.

What is the total tax provision disclosed in the statement of financial position of Alex plc for 2022?

Select ONE answer:

1. £14,000
2. £110,000
3. £114,000
4. £210,000

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 3

1. Not correct
2. Not correct
3. Correct – £100k + £110k – £96k = = > £114k
4. Not correct

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