Accounting Multiple Choice Question – 3 August 2023

The following debit balance appears on a trial balance after preparing the manufacturing account for the year.

• loose tools £18,000

What is this item?

Select ONE answer:

1. a creditor for loose tools
2. the annual charge for loose tools
3. a prepayment for loose tools
4. stock of loose tools

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

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