Day: August 26, 2026

Accounting Multiple Choice Question – 26 August 2026

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

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The results of substantive tests in relation to trade payables at Alex Manufacturing Ltd are set out below.

The materiality threshold set for these tests was £17,000.

For each of the following results, select the action which should be taken by the audit senior.

  • Three goods inwards notes dated before the year end, relating to goods worth £16,000, were traced to purchase invoices that were included in the subsequent year and not provided for this year.

Select ONE answer:

  1. Draw conclusion
  2. Refer to a senior colleague
  3. Extend sample
  4. Refer to a junior colleague

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 – For the misstatement in cut-off, the sample should be extended to measure the full extent of the cut-off misstatement.
  4. Not correct

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