Category: Accounting

The journal entry ‘Debit Subscription Income, Credit Creditors’ was made in the accounting records of a golf club.

What does this represent?

Select ONE answer:

1. Membership subscriptions owed by members
2. Membership subscriptions received by cheque
3. Membership subscriptions received in advance
4. Membership subscriptions refunded to members

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

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

A company has completed arrangements for the closure of part of its business next year.

What should the company create in this year’s accounts for the closure costs?

Select ONE answer:

1. a contingency
2. a liability
3. a provision
4. a reserve

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

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

You are given the following invoice information concerning the purchase of a van by a local business.

• purchase price – £13 000
• delivery charge – £500
• sign writing – £200
• road tax – £200
• tank of fuel – £50

How much should be debited to the NCA motor van account?

Select ONE answer:

1. £13,500
2. £13,700
3. £13,900
4. £13,950

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 ==> £13,000 + £500 + £200
3. Not correct
4. Not correct

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

The following relate to a factory.

Which items make up factory overhead?

Select ONE answer:

1. 1 and 2
2. 2 and 3
3. 2 and 4
4. 4 and 5

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

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

A business uses absorption costing.

Which cost is used to value finished stock?

Select ONE answer:

1. full cost
2. prime cost
3. variable cost of production
4. variable cost of sales

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

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