Day: July 11, 2026

Accounting Multiple Choice Question – 11 July 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 procedures would provide the most reliable source of evidence where a company receives an invoice after the year-end, which relates to a period that straddles the year-end?

Select ONE answer:

  1. Confirming the purchase amount to a supplier statement at the year-end
  2. Recalculating the portion of the invoice amount which relates to the reporting period
  3. Vouching the payment of the invoice
  4. Testing internal controls over accruals

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 – A supplier statement would not include this invoice, as it was dated after the year end. Vouching the payment would not help to determine whether the expense and the payable were included correctly. Testing internal controls would provide evidence over accruals in general, but would not be relevant to this invoice specifically. Only by recalculating the prorating of the invoice can the auditor be confident that the correct amount has been included.
  3. Not correct
  4. Not correct

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