Accounting Multiple Choice Question – 12 September 2018

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

If there is a separate sub-ledger account for every debtor and creditor, which of the following double-entries is the correct way to record money received from Peter Smith, who is a debtor to the business?

Select ONE answer:

  1. Account to Debit Peter Smith / Account to Credit Bank
  2. Account to Debit Bank / Account to Credit Peter Smith
  3. Account to Debit Bank / Account to Credit Cash
  4. Account to Debit Cash / Account to Credit Peter Smith

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – This is the correct double entry record when a firm receives money from one of its debtors for an unpaid invoice.

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Accounting Multiple Choice Question – 11 September 2018

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

A school brought a set of computers to be used in the teaching of lessons, and paid for them using a cheque. Which of the following double-entries below is the correct way to record this transaction?

Select ONE answer:

  1. Account to Debit Computer / Account to Credit Bank
  2. Account to Debit Bank / Account to Credit Computer
  3. Account to Debit Cash / Account to Credit Computer
  4. Account to Debit Computer / Account to Credit Cash

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 1 – This is the correct double entry record when a school buys the computers and pays for the asset by using a cheque. Answer 2 – would be when the school then sold the computers to a third-party and were paid by a cheque.

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Accounting Multiple Choice Question – 10 September 2018

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

Which one of the following possible double-entries is correct?

Select ONE answer:

  1. Account to Debit Bank / Account to Credit Bank
  2. Account to Debit Vehicles / Account to Credit Bank
  3. Both of the above
  4. None of the above

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – This is the correct double entry record when a firm buys a vehicle and pays for the asset by using a cheque.

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Accounting Multiple Choice Question – 9 September 2018

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

Which one of the following statements is correct?

Select ONE answer:

  1. To record an increase in any given asset account, then that account must be debited.
  2. To record a decrease in capital, the capital account must be credited.
  3. To record an increase in any given liability account then that account must be credited.
  4. To record a decrease in any given liability account then that account must be credited.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 1 – The other three answers are incorrectly stated e.g. to record a decrease in capital, then the capital account must be debited.

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Accounting Multiple Choice Question – 8 September 2018

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

When a manufacturing business has purchased raw materials on credit then the impact on its assets and / or liabilities is:

Select ONE answer:

  1. Effect upon Assets – Decrease bank / Effect upon Liabilities – Decrease creditors
  2. Effect upon Assets – Increase cash / Effect upon Liabilities – No impact
  3. Effect upon Assets – Increase cash / Effect upon Liabilities – Decrease loan
  4. Effect upon Assets – Increase stock / Effect upon Liabilities – Increase creditors

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – As a result of the business buying raw materials it has increased its stock as it now has more raw materials than it previously had, and it now has more creditors than it previously had having brought the items on credit.

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Accounting Multiple Choice Question – 7 September 2018

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

When a business has been granted a bank loan and the money transferred into its bank account, the impact on its assets and / or liabilities is:

Select ONE answer:

  1. Effect upon Assets – Decrease bank / Effect upon Liabilities – Decrease loan
  2. Effect upon Assets – Decrease bank / Effect upon Liabilities – Increase debtors
  3. Effect upon Assets – Increase bank / Effect upon Liabilities – Increase loan
  4. None of the above

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – As a result of the business being granted a bank loan and receiving money into its bank account, then it now has more money in its bank account than it previously enjoyed, and it owes more money to the bank than it previously had.

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Accounting Multiple Choice Question – 6 September 2018

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

When a business receives money from one of its debtors by cheque, the impact on its assets and / or liabilities is:

Select ONE answer:

  1. Effect upon Assets – Decrease bank / Effect upon Liabilities – Decrease creditors
  2. Effect upon Assets – Increase bank / Effect upon Liabilities – Decrease debtors
  3. Effect upon Assets – Increase cash / Effect upon Liabilities – Decrease loan
  4. Effect upon Assets – Increase stock / Effect upon Liabilities – Decrease capital

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – As a result of the business receiving money from one of its debtors by cheque, it has more money that in previously had in its bank account and is owed less than it previously was by its debtors.

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