Category: Accounting

Value Added Tax . . .

Select ONE answer:

1. is paid by the purchaser of goods and services, at the relevant rate, on the value added to them by their seller.
2. is collected by the HMRC on behalf of the government as value is added to goods and services.
3. is charged at the relevant rate by the sellers of goods and services on the value added by them.
4. None of the above.

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. Incorrect – A VAT is paid by the purchaser of goods and services on the full price, excluding VAT, of those goods and services.
2. Correct
3. Incorrect – VAT is charged by vendors of goods and services on the full price, excluding VAT, of those goods and services.
4. Incorrect

 

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The abbreviation ‘VAT’ means . . .

Select ONE answer:

1. Variable Agricultural Tax.
2. Value Associated Tax.
3. Value Added Tax.
4. None of the above.

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. Incorrect
2. Incorrect
3. Correct
4. Incorrect

 

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During the month of March, a firm which wishes to maintain a petty cash float of £200, paid £146 out of petty cash.

How much should it reimburse to the imprest at the end of the month?

Select ONE answer:

1. £54
2. £146
3. £200
4. £254

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. Incorrect – A Cash sales should be recorded in the cash book (or cash receipts book).
2. Correct – By always reimbursing the amount paid out during a period, the float (imprest) will always be restored to the amount on hand at the beginning of the period.
3. Incorrect – Goods sold on credit should be recorded in the sales journal.
4. Incorrect

 

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If small cash payments are initially recorded in a Petty Cash Book, rather than being recorded directly into the general ledger, there will be . . .

Select ONE answer:

1. more entries in the general ledger.
2. fewer entries in the general ledger.
3. the same number of entries in the general ledger.
4. no entries in the general ledger in respect of petty cash.

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. Incorrect – A Cash sales should be recorded in the cash book (or cash receipts book).
2. Correct – There will be fewer entries in the general ledger because several transactions involving petty cash will be grouped in the petty cash book and then posted, as a single total, to the general ledger.
3. Incorrect – Goods sold on credit should be recorded in the sales journal.
4. Incorrect

 

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Which of the following should be recorded in the Journal?

Select ONE answer:

1. Cash sales.
2. Fixtures bought on credit.
3. Goods sold on credit.
4. None of the above.

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. Incorrect – A Cash sales should be recorded in the cash book (or cash receipts book).
2. Correct
3. Incorrect – Goods sold on credit should be recorded in the sales journal.
4. Incorrect

 

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