Category: Uncategorized

What will increase the working capital and net assets and reserves of a company?

Select ONE answer:

1. a bonus issue of shares
2. a debenture issue
3. an issue of shares at a premium
4. an issue of shares at nominal value

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.

The closing balance on a Purchases Ledger Control account is £163,762.

The purchase day book (journal) or book of prime entry has been undercast by £1,000.

What should be the correct closing balance on the Purchases Ledger Control account?

Select ONE answer:

1. £162,762
2. £163,762
3. £164,762
4. £165,762

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 – £163,762 + £1,000
4. Not correct

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

What would NOT appear in a Sales Ledger Control account?

Select ONE answer:

1. cash received from customers
2. discounts allowed
3. discounts received
4. returns inwards

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 accounting policies illustrate the matching principle?

1. charging depreciation on fixed assets
2. revaluing fixed assets on a regular basis
3. using the reducing balance method of depreciation

Select ONE answer:

1. 1, 2 and 3
2. 1 and 2 only
3. 1 and 3 only
4. 2 and 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 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 the straight line method to provide for depreciation of equipment.

Why should it continue to use this method in subsequent years?

Select ONE answer:

1. accounting principles never allow accounting methods to be changed
2. other methods of depreciation are unsuitable for depreciating equipment
3. to ensure that profits are stated on a consistent basis over time
4. to ensure that the Balance Sheet always shows the market value for equipment

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.