Category: Uncategorized

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

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

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

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

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

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

On 1 October 2014 a company purchased machinery for £26,000.

It was decided to depreciate the asset using the reducing balance method at a rate of 20 % per annum.

On 30 September 2016 the asset was sold for £12,000.

What is the profit or loss on disposal?

Select ONE answer:

1. £3,600 loss
2. £3,600 profit
3. £4,640 loss
4. £4,640 profit

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.

Which would be the reason for an adverse material usage variance?

Select ONE answer:

1. Production has been at a lower level than budgeted.
2. The company has paid its suppliers more for the material than planned.
3. The material has been used inefficiently in the factory.
4. There has been difficulty in obtaining the material from suppliers.

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.