Day: October 21, 2026

Accounting Multiple Choice Question – 21 October 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 describes how an assurance provider would check the existence assertion for a non-current asset?

Select ONE answer:

  1. Trace the physical item to the financial statements
  2. Trace an entry in the non-current asset register to the physical item
  3. Trace an entry in the non-current asset register to the financial statements
  4. Trace an entry in the financial statements to the physical item

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 – To test for existence the reporting accountant should work from the financial statements to the physical item. However, the financial statements themselves do not contain an analysis of the individual items that make up non-current assets so the reporting accountant will need to select his sample from the non-current asset register (having checked that this record agrees to the financial statements).
  3. Not correct
  4. Not correct

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