Day: September 15, 2026

Accounting Multiple Choice Question – 15 September 2026

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

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

  • Due to a miscalculation of cost, some inventory items have been included at cost even though the net realisable value is lower.

Select ONE answer:

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

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 accuracy, valuation and allocation assertion is affected by miscalculations of cost and the not writing down of damaged items (i.e., inventory is incorrectly valued).
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.