Month: November 2023

Accounting Multiple Choice Question – 20 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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In preparing the income statement, only realised profits and not anticipated profits must be brought into account.

In addition, all possible losses must also be taken into account immediately.

Which accounting principle does this describe?

  1. accruals
  2. consistency
  3. going concern
  4. prudence

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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Accounting Multiple Choice Question – 19 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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The table shows information for Alex Trading for 31 December 2022.

  • Credit sales invoiced during financial year – worth £80k
  • Goods despatched to customers in December 2022 and invoiced in January 2023 – worth £5k
  • Goods included in sales for December 2022 on a sale or return basis, but only sold in January 2023: at invoice price £10k & at cost price £8k

Which amount will appear in the trading account as sales for the year ended 31 December 2022?

Select ONE answer:

  1. £75k
  2. £77k
  3. £83k
  4. £85k

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 – £80k + 35k – £10k
  2. Not 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 – 18 November 2023

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

apple devices books business coffee
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Development costs are capitalised by Alex Trading plc

Which accounting principle is being applied?

Select ONE answer:

  1. business entity
  2. historic cost
  3. matching / accruals
  4. materiality

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 3

  1. Not correct
  2. Not correct
  3. 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 – 17 November 2023

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

The following information is taken from the stationery account of Alex Trading Ltd.

  • value of stationery inventory at the beginning of the year – £600
  • cash paid for stationery during the year – £7,000
  • amount owing for stationery at the end of year – £480
  • value of stationery inventory at the end of the year – £800

How much should be debited to the income statement for stationery?

Select ONE answer:

  1. £6,680
  2. £6,800
  3. £7,280
  4. £8,080

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 3

  1. Not correct
  2. Not correct
  3. Correct — > £600 + £7,000 + £480 – £800
  4. Not correct

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

Accounting Multiple Choice Question – 16 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 buys a computer for £2,200 on 1 January 2021.

The computer will be used for four years, after which time it will be sold for £280.

The business uses the straight-line method of depreciation. 

What is the depreciation charge for the year ended 31 December 2022?

Select ONE answer:

  1. £480
  2. £550
  3. £960
  4. £1,100

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 – (£2,200 – £280) / 4 = £480
  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.