Accounting Multiple Choice Question – 25 September 2023

Interest receivable account shows interest of £17,500 was received during the year.

Interest receivable of £1,600 is due at the year-end.

How will this be shown in the final accounts?

Select ONE answer:

1. Income Statement Additional Income Credit £17,500 AND Statement of Financial Position Debit Current Assets £1,600
2. Income Statement Additional Income Credit £19,100 AND Statement of Financial Position Debit Current Assets £1,600
3. Income Statement Additional Income Credit £17,500 AND Statement of Financial Position Debit Current Liabilities £1,600
4. Income Statement Additional Income Credit £17,500 AND Statement of Financial Position Debit Current Liabilities £1,600

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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