Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

Accounting Multiple Choice Question – 26 February 2023

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

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The total of the balances in the purchases ledger does not agree with the balance on the purchases ledger control account.

It is found that a credit balance of £3,100 on a supplier’s account has been listed as a debit balance.

What is the effect of correcting the error on the total of the purchases ledger balances?

Select ONE answer:

  1. £3,100 decrease
  2. £3,100 increase
  3. £6,200 decrease
  4. £6,200 increase

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

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

Accounting Multiple Choice Question – 25 February 2023

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

apple devices books business coffee
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The following information relates to Alex plc’s business:

  • opening accounts receivable – £280k
  • cash received during the year – £520k
  • discounts allowed during the year – £30k
  • bad debts written off during the year – £15k
  • closing accounts receivable – £265k

What were the sales during the year?

Select ONE answer:

  1. £490k
  2. £535k
  3. £550k
  4. £580k

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 = (£520k + £30k + £15k + £265k) – £280k = £550k
  4. Not correct

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

Accounting Multiple Choice Question – 24 February 2023

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

The cost of a new machine has been debited to the repairs account.

What error is this an example of?

Select ONE answer:

  1. commission
  2. omission
  3. principle
  4. reversal of entries

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
  4. Not correct

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

Accounting Multiple Choice Question – 23 February 2023

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

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A company changes from the straight-line method of depreciation to the reducing balance method.

Which accounting principle has not been applied?

Select ONE answer:

  1. consistency
  2. going concern
  3. historic cost
  4. materiality

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 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 22 February 2023

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

An item of stock originally cost £5,000, but has deteriorated badly and is written down to its estimated net realisable value of £2,000.

Which accounting principle has been applied?

Select ONE answer:

  1. consistency
  2. materiality
  3. prudence
  4. Money measurement

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
  4. Not correct

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