Day: September 12, 2026

Accounting Multiple Choice Question – 12 September 2026

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

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For the following circumstance described in respect of inventory, select which financial statement assertion would be affected.

  • Inventory sold by the end of the period has been included in inventory.

Select ONE answer:

  1. Net Realisable Value
  2. Completeness
  3. Accuracy, valuation and allocation
  4. Cut-off

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 – The cut-off assertion is affected by including inventory sold in inventory at the end of the period (i.e., cut-off is incorrect). Where damaged items have not been written down to NRV, then the accuracy, valuation and allocation assertion is directly affected (i.e., inventory is incorrectly valued).

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