Accounting Multiple Choice Question – 1 December 2023

The directors of Alex Ltd provide the following information to you.

• bank overdraft – £1,200
• equipment – £12,000
• long term loan – £8,000
• petty cash – £900
• Inventory – £2,500
• trade payables – £3,000
• Trade receivables – £2,000

What is the amount of the net current assets?

Select ONE answer:

1. £1,200
2. £2,400
3. £3,600
4. £5,200

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 – £2,500 + £2.000 + £900 – £3,000 – £1,200
2. Not correct
3. Not correct
4. Not correct

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