Day: August 4, 2023

Accounting Multiple Choice Question – 4 August 2023

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

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At the year-end a cash book shows a credit balance of £4,800.

The bank statement included bank charges of £25 which had not been included in the cash book.

Cheque payments entered in the cash book before the year end to the value of £250 had not yet cleared the bank.

How would the bank balance be shown in the statement of financial position?

Select ONE answer:

  1. current asset £4,775
  2. current liability £4,825
  3. current asset £5,025
  4. current liability £5,075

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 – £4,800 + £25
  3. Not correct
  4. Not correct

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