Day: October 3, 2023

Accounting Multiple Choice Question – 3 October 2023

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

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Alex Ltd’s capital expenditure of £200,000 has been debited in error to the purchases account.

Depreciation is provided at the rate of 15 % per annum on the cost of all non-current assets held at each year end.

How will this affect the net profit?

Select ONE answer:

  1. £170,000 understated
  2. £200,000 overstated
  3. £200,000 understated
  4. £230,000 overstated

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 – £200k * 0.85
  2. Not correct
  3. Not correct
  4. Not correct

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