Day: November 24, 2023

Accounting Multiple Choice Question – 24 November 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 Trading Supplies sells some of its inventory for £500 on credit to a customer.

The inventory originally cost £600.

What is the effect of this transaction on the statement of financial position?

Select ONE answer:

  1. current assets – decrease by £100 and owner’s capital – decrease by £100
  2. current assets – decrease by £100 and owner’s capital – increase by £100
  3. current assets – increase by £100 and owner’s capital – decrease by £100
  4. current assets – increase by £100 and owner’s capital – increase by £100

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

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