Day: September 2, 2026

Accounting Multiple Choice Question – 2 September 2026

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

Lucy, an audit senior, has obtained a list of items which make up the cash and cash equivalents balance (£3,556) in the financial statements of Alex Manufacturing Ltd.

Materiality has been set at £4,000.

For the item below, select whether Lucy should test or should NOT test the item, or whether they should consult a senior colleague or a junior colleague.

  • Petty cash float £750

Select ONE answer:

  1. Test
  2. Not Test
  3. Consult a senior colleague
  4. Consult 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 2

  1. Not correct
  2. Correct – The petty cash float is not material and hence need not be tested.
  3. Not correct
  4. Not correct

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