Category: Accounting

The following information relates to the disposal of a non-current asset.

• profit on disposal – £5 200
• cost of non-current asset sold – £14 400
• sales proceeds – £6 800

What was the accumulated depreciation on the non-current asset sold?

Select ONE answer:

1. £1,600
2. £2,400
3. £7,600
4. £12,800

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 ==> £14,400 + £5,200 – £6,800

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A business had a non-current asset with a net book value of £18,000 at 31 December 2021.

It had been purchased during the year ended 31 December 2020.

Depreciation is charged at a rate of 25% per annum using the reducing balance method.

A full year’s depreciation is charged in the year of purchase.

What was the original cost of the non-current asset?

Select ONE answer:

1. £22,500
2. £24,000
3. £27,000
4. £32,000

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 ==> £18k / 0.75 / 0.75 = £32k

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

Which costs are NOT a part of capital expenditure when purchasing a new machine?

1 delivery costs
2 installation costs
3 machine operator training costs

Select ONE answer:

1. 1 and 2
2. 2 and 3
3. 2 only
4. 3 only

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

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

The employees of a successful Staffordshire company are skilled and efficient.

Although they are regarded as a human asset of the company, no value for them has been recorded in the financial statements of the business.

Which accounting concept has been applied?

Select ONE answer:

1. Duality
2. Money measurement
3. Realisation
4. Business Entity

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
3. Not correct
4. Not correct

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

If average inventories held were valued at £15,000 and cost of good sold was £200,000, calculate the inventory turnover?

Select ONE answer:

1. 54.75 days
2. 82.13 days
3. 27.38 days
4. 13.69 days

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 ==> (AI / COS) * 365 Days ==> 27.38 days
4. Not correct

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