Month: January 2025

Accounting Multiple Choice Question – 6 January 2025

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

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Alex is a financial accountant working for Lucy plc.

In conversation with his colleague Ted, Alex has made the following points below concerning financial statements.

Which of Alex’s points is true?

Select ONE answer:

  1. Financial statements are used mainly by management
  2. Financial statements are used by parties internal to the business only
  3. Financial statements are used only by investors
  4. Financial statements are used by investors, payables (creditors) and management

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > General purpose financial statements are used by investors, payables (creditors) and management.

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Accounting Multiple Choice Question – 5 January 2025

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

Photo by Olya Kobruseva on Pexels.com

According to the Conceptual Framework for Financial Reporting to support the effective working of capital markets for the benefit of businesses, then financial statements must have which ONE of fundamental qualitative characteristics listed below?

Select ONE answer:

  1. Understandability
  2. Faithfulness of representation
  3. Comparability
  4. Timeliness

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 == > Faithfulness of representation is one of the fundamental characteristics that investors will be able to rely on them in making their decisions. Understandability, Timeliness and Verifiability are enhancing characteristics to this fundamental characteristic.
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 4 January 2025

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

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According to the Conceptual Framework for Financial Reporting to support the effective working of capital markets for the benefit of businesses, then financial statements must have which ONE of fundamental qualitative characteristics listed below?

Select ONE answer:

  1. Relevance
  2. Comparability
  3. Timeliness
  4. Verifiability

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 == > Relevance is one of the fundamental characteristics that investors will be able to rely on them in making their decisions. Comparability, Timeliness and Verifiability are enhancing characteristics to this fundamental characteristic.
  2. Not correct
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 3 January 2025

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

Photo by Olya Kobruseva on Pexels.com

In relation to users of financial information, which of the following statements is true?

Select ONE answer:

  1. External users evaluate the performance of a company’s management using management accounting
  2. Financial reporting provides information to managers and people outside the company, such as investors
  3. Management accounting provides information to managers and people outside the company, such as investors
  4. Financial reporting generates confidential information for internal decision makers such as executives and management

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 == > External users do not have access to management accounting information (1) and (3). Financial reporting does provide information to both managers and people outside the company, such as investors (2) but it is not confidential (4).
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 2 January 2025

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 issues are key in relation to information processing in a company’s accounting systems?

Issue 1 Completeness
Issue 2 Non-repudiation
Issue 3 Verifiability

Select ONE answer:

  1. Issues 1 and 2 only
  2. Issues 2 and 3 only
  3. Issues 1 and 3 only
  4. Issues 1, 2 and 3

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 == > To be effective, information processing should meet the CATIVA criteria – completeness, accuracy, timeliness, inalterability, verifiability and assessability. Non-repudiation is one of the ACIANA qualities of information systems security.
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.