Day: May 8, 2026

Accounting Multiple Choice Question – 8 May 2026

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

Which ONE of the following statements is correct with respect to evidence and sampling?

Select ONE answer:

  1. Inspection of assets confirms rights and obligations
  2. Inspection of a purchase invoice confirms the cost of the inventory
  3. Observation gives strong ongoing evidence of the matter being observed
  4. Inquiry of third parties gives worse evidence than inquiries of an entity’s insiders

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 – Inspection of assets does not confirm rights and obligations as the asset might be possessed wrongfully or leased and inspection will not show that. Observation gives only weak evidence of the matter being observed and only at the moment the matter was being observed, not the next time it is done, unobserved.
  3. Not correct
  4. Not correct

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