Day: December 26, 2023

Accounting Multiple Choice Question – 26 December 2023

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

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Which of the following items should be treated as capital expenditure in the financial statements of a sole trader?

Select ONE answer:

  1. £500 taken by the proprietor to buy himself a hi-fi music system for his family home
  2. £400 spent on purchasing a new PC to replace his secretary’s old one
  3. £2,000 on purchasing a machine for resale to his customers
  4. £150 paid to a painter for redecorating his office

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 2

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

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