Accounting Multiple Choice Question – 19 May 2019

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

Which of the following is a personal account?

Select ONE answer:

  1. Buildings.
  2. Wages.
  3. Debtors.
  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. Buildings is a real account.
  2. Wages is a nominal account.
  3. Correct
  4. Not correct

 

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Accounting Multiple Choice Question – 18 May 2019

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

Which of the following are entered in the Purchases Journal (otherwise known as the Purchases Daybook)?

Select ONE answer:

  1. Payments to suppliers.
  2. Trade discount.
  3. Invoices received from suppliers.
  4. Cash discount (also known as settlement discount) received.

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. Payments to suppliers are entered in the Cash Book (or Cheque Payments Book).
  2. Invoices are entered in the Purchases Journal (Purchases Daybook) net of trade discount.
  3. Correct
  4. Discounts received are entered in the Cash Book (or Cash Receipts Book).

 

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Accounting Multiple Choice Question – 17 May 2019

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

Which of the following is a ‘Book of Original Entry’?

Select ONE answer:

  1. The sales (debtors) ledger.
  2. The purchases journal (daybook).
  3. The general (nominal) ledger.
  4. The purchases (creditors) ledger.

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. Data is ‘posted’ to the Sales Ledger from the Sales Journal, the Cash Book and possibly the Journal. Therefore, the Sales Ledger is not the first place in which the information in it is recorded.
  2. Books of original entry are so called because they are the first (original) place in which transactions are recorded. They are also known as ‘Books of Prime Entry’.
  3. Data is ‘posted’ to the general ledger from the Books of Original Entry. Therefore, the General Ledger is not the first place in which the information in it is recorded.
  4. Data is ‘posted’ to the purchases ledger from the Purchases Journal, the Cash Book and possibly the Journal. Therefore, the Purchases Ledger is not the first place in which the information in it is recorded.

 

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Accounting Multiple Choice Question – 16 May 2019

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

Which of the four fundamental accounting concepts (listed below) is sometimes referred to as the matching concept ….?

Select ONE answer:

  1. the accruals concept.
  2. the prudence concept.
  3. the going concern concept.
  4. the consistency concept.

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. The matching concept is often known as the accruals concept because the accruals concept means that profit is equal to revenues less expenses, that is, expenses are matched (offset) against revenues to give a profit figure.
  2. Not correct
  3. Not correct
  4. Not correct

 

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Accounting Multiple Choice Question – 15 May 2019

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

According to SSAP 2….?

Select ONE answer:

  1. the financial statements of a firm must always be prepared on the basis that the firm is a going concern.
  2. materiality is a ‘fundamental’ accounting concept.
  3. when two or more accounting concepts conflict, the prudence concept overrides the other concept(s).
  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. The financial statements of a firm should be prepared on the basis that the firm is a going concern, only when this is considered to be the case. If it is considered that the firm is not a going concern, its accounts should be prepared on that basis. This will mean that assets will be shown at their market value, provision will have to be made for redundancy costs, costs associated with selling assets etc. and all liabilities will be shown as current liabilities (as the firm is unlikely to be in business after more than one year to pay long- term liabilities).
  2. Although the materiality concept is a well-recognised accounting concept, it is not one of the ‘fundamental’ accounting concepts referred to in SSAP2.
  3. Correct
  4. Not correct

 

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Accounting Multiple Choice Question – 14 May 2019

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

Which of the following is one of the ‘fundamental accounting concepts’ referred to in SSAP 2?

Select ONE answer:

  1. The materiality concept.
  2. The business entity concept.
  3. The going concern concept.
  4. The money measurement concept.

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. Although the materiality concept is a well-recognised accounting concept, it is not one of the ‘fundamental’ accounting concepts referred to in SSAP2.
  2. Although the business entity concept is a well—recognised accounting concept, it is not one of the ‘fundamental’ accounting concepts referred to in SSAP2.
  3. Correct
  4. Although the money measurement concept is a well-recognised accounting concept, it is not one of the ‘fundamental’ accounting concepts referred to in SSAP2.

 

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Accounting Multiple Choice Question – 13 May 2019

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

The consistency concept means that…?

Select ONE answer:

  1. when preparing the accounts of a firm, one should normally account for similar items in the same way from one accounting period to the next.
  2. firms in the same industry must account for similar items in the same way.
  3. firms may never change the way in which they prepare their accounts.
  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 1

  1. Correct
  2. The consistency concept requires consistency of treatment over time, not across firms.
  3. Firms may change the way in which they prepare their accounts if the new way is more ‘correct’ than the old.
  4. Not correct

 

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