Day: January 22, 2024

Accounting Multiple Choice Question – 22 January 2024

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 borrows £10,000 from a bank.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets and liabilities
  2. Assets and capital
  3. Capital and liabilities
  4. Assets only

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 -Assets increase as cash on receipt of the loan funds, and liabilities will increase as the loan is a liability.
  2. Not correct
  3. Not correct
  4. Not correct

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