Accounting Multiple Choice Question – 22 January 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex Trading borrows £10,000 from a bank.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets and liabilities
  2. Assets and capital
  3. Capital and liabilities
  4. Assets 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 1

  1. Correct -Assets increase as cash on receipt of the loan funds, and liabilities will increase as the loan is a liability.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 21 January 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex Trading purchased some goods on credit.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets and liabilities
  2. Assets and capital
  3. Capital and liabilities
  4. Assets 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 1

  1. Correct -Assets will increase as Alex Trading has acquired inventory, and liabilities will increase as the goods were purchased on credit.
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 20 January 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex Trading is £5,000 overdrawn at his bank and then receives £2,000 from a credit customer in respect of an overdue invoice.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets and liabilities only
  2. Liabilities only
  3. Assets only
  4. Assets, liabilities and capital

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 – The overdraft liability will decrease, and receivables will decrease by an equal amount.
  2. Not correct
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 19 January 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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There are two main approaches to a code of professional ethics: a rules-based ethical code and a code based upon a set of principles.

Indicate whether the following statements are false.

  1. A code based upon a set of principles requires a professional accountant to comply with a set of specific rules.
  2. A rules-based code requires a professional accountant to identity, evaluate and address threats to compliance with fundamental ethical principles.
  3. The ICAEW uses a rules-based approach.

Select ONE answer:

  1. 1 and 2
  2. 1,2 and 3
  3. 2 and 3
  4. None of them

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

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

Accounting Multiple Choice Question – 18 January 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Olya Kobruseva on Pexels.com

Which of the following statements best describes ethical guidance in the UK?

Select ONE answer:

  1. Ethical guidance provides a set of rules which must be followed in all circumstances
  2. Ethical guidance is a framework containing a combination of rules and principles, the application of which is dependent on the professional judgement of the accountant based on the specific circumstances
  3. Ethical guidance provides a set of principles which can be applied at the discretion of the accountant
  4. Ethical guidance is a series of legal requirements

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

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