Day: March 24, 2024

Accounting Multiple Choice Question – 24 March 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 plc purchased a machine for £120,000 on 1 October 2018.

The estimated useful life is 4 years with a residual value of £4,000.

Alex plc uses the straight-line method for depreciation and charges depreciation on a monthly basis.

The charge for depreciation in the income statement for the year ended 31 December 2018 is?

Select ONE answer:

  1. £4,833
  2. £7,250
  3. £7,500
  4. £29,000

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– (£120,000-4,000) / 48 x 3 = £7,250
  3. Not correct
  4. Not correct

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