Accounting Multiple Choice Question – 31 December 2023

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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