Month: September 2023

Accounting Multiple Choice Question – 25 September 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

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

Accounting Multiple Choice Question – 24 September 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

A car cost £60,000 to purchase.

The car was later sold for £8,000 and the loss on disposal was £3,000.

What was the accumulated depreciation on the car on disposal?

Select ONE answer:

  1. £46,000
  2. £49,000
  3. £52,000
  4. £55,000

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 2

  1. Not correct
  2. Correct = Dr Cost £60k Cr Bank £8k Cr Loss £3k == > Depreciation is the difference £49k
  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 – 23 September 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

A loan due for repayment in 20 months’ time has been included as a current liability.

What will be the effect when this is corrected?

Select ONE answer:

  1. increase net assets
  2. increase net current assets
  3. no effect on net current assets
  4. reduce net current assets

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

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

Accounting Multiple Choice Question – 22 September 2023

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

Photo by Pixabay on Pexels.com

Which item should be treated as capital expenditure?

Select ONE answer:

  1. cost of carriage on the purchase of a non-current asset
  2. cost of replacement of part of a non-current asset
  3. depreciation of a non-current asset
  4. repairs to a non-current asset

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
  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 – 21 September 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

Alex ltd is considering buying equipment at a cost of £80,000.

This equipment will save £40,000 per annum in operating costs over the next three years, after which it will have no scrap value.

Using the following discount factors:

  • year 0 – 1.000
  • year 1 – 0.909
  • year 2 – 0.826 
  • year 3 – 0.751

What is the net present value of the equipment?

Select ONE answer:

  1. £(10,600)
  2. £19,440
  3. £40,000
  4. £99,440

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 = -£80k + (£40k *0.909) + (£40k * 0.826) + (£40k * 0.751)
  3. Not correct
  4. Not correct

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