Month: December 2023

Accounting Multiple Choice Question – 31 December 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

A business can make a profit and yet have a decreased bank balance.

Which of the following might cause this to happen?

Select ONE answer:

  1. The sale of non-current assets at a loss
  2. The charging of depreciation in the statement of profit or loss
  3. The lengthening of the period of credit given to customers
  4. The lengthening of the period of credit taken from suppliers

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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Accounting Multiple Choice Question – 30 December 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

The capital balance of Alex Trading, who is a sole trader, would change as a result of?

Select ONE answer:

  1. A credit customer paying by cheque
  2. Raw materials being purchased on credit
  3. Non-current assets being purchased on credit
  4. A personal petrol expense of Alex being paid for out of the business’s petty cash

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

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

Accounting Multiple Choice Question – 29 December 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 accounting equation can be written as?

Select ONE answer:

  1. Assets + profits – drawings – liabilities = closing capital
  2. Assets – liabilities – drawings = opening capital + profit
  3. Assets – liabilities – opening capital + drawings = profit
  4. Opening capital + profit – drawings –liabilities = 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 3

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

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

Accounting Multiple Choice Question – 28 December 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

In relation to the business of a sole trader, which two of the following items does the government and its agencies need to be able to most do?

  • A  Establish levels of tax revenue
  • B  Assess whether the business will continue in existence
  • C  Produce national statistics
  • D  Assess the owner’s stewardship
  • E  Take decisions about their investment

Select ONE answer:

  1. A and B
  2. B and C
  3. C and D
  4. A and C

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

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

Accounting Multiple Choice Question – 27 December 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 three of the following users of financial statements are likely to be interested in the financial statements of a very small private limited company?

  1. UK stock market analysts
  2. The company’s employees
  3. The company’s bank
  4. Very large Institutional shareholders
  5. The company’s suppliers

Select ONE answer:

  1. 2, 3 and 5
  2. 1, 3 and 5
  3. 2, 3 and 4
  4. 3, 4 and 5

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 – The company’s employees would be interested in the financial statements of the company as they want to know whether or not they would have a job in the future. The company’s bank may be interested in the financial statements as the company being a very small company, would need to take out loans from the bank. The bank wants to access the ability of the company to repay the loan. The company’s suppliers, similar to it’s employees, will want to know if they will be able to continue selling their products to the company in the future thereby building a good relationship with the company. UK stock market analysts may only be interested in public limited companies as it provides information about investment to aid investors into deciding which companies to invest in.
  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.