Day: August 31, 2024

Accounting Multiple Choice Question – 31 August 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 is preparing its financial statements for the year ended 31 December 2023.

Its initial trial balance shows the following balances:

Tax payable as at 1 January 2023 £2,091
Tax paid regarding 2022 in 2023 (as finally agreed with HMRC) £1,762

The estimated tax due for the year ended 13 December 2022 is £2,584.

In Alex plc’s income statement for the year ended 31 December 2023 the figure for tax expense will be?

Select ONE answer:

  1. £1,269
  2. £2,255
  3. £2,584
  4. £2,913

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. Notcorrect
  2. Correct ==> Dr Bank Payments £1,762 + Bal c/d £2,584 = Total £4,386 – Cr Balance B/D £2,091 == > I/S £2,255
  3. Not correct
  4. Not correct

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