Accounting Multiple Choice Question – 12 June 2023

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

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Alex plc sells goods at cost plus 25 %.

Information for a recent financial year is shown below.

  • Turnover – £240k
  • Opening stock – £42k
  • Closing stock – £48k

What is the total of purchases for the year?

Select ONE answer:

  1. £180k
  2. £186k
  3. £192k
  4. £198k

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – £240k / 1.25 = £192k + (£48k – £42k)

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Accounting Multiple Choice Question – 11 June 2023

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

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Partnership capitals is respectively £60K for Alex and £90k for Lucy.

The partnership agreement provides for interest on capital at 10% per annum, but makes no other financial provisions

Profits for the current year is shown as £75k in the Income Statement.

How will the total profits be divided between the partners Alex and Lucy?

Select ONE answer:

  1. Alex £30.0k and Lucy £45.0k
  2. Alex £36.0k and Lucy £39.0k
  3. Alex £37.5k and Lucy £37.5k
  4. Alex £39.0k and Lucy £36.0k

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 correc
  2. Correct – If a partnership agreement allows interest on capitals but makes no other financial provisions, then under the Partnership Act the balance of profits is shared equally by the partners. Therefore, £75k – £15k (£150k * 10%) = £60k / 2 = £30k each then Alex £30k = £6k = £36k and Lucy £30k + £9k = £39k
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 10 June 2023

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

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The trial balance totals are

Debit £500 150 credit £500 000

Which error could have caused the difference?

Select ONE answer:

  1. A credit purchase has only been recorded in a creditor’s account.
  2. A credit sale has not been recorded.
  3. A cash sale has only been recorded in the sales account.
  4. A credit sale has only been recorded in a debtor’s account.

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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Accounting Multiple Choice Question – 9 June 2023

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

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The bank statement of a business shows an overdraft of £250 at the year end.

There are cheques written but not yet cleared by the bank amounting to £140.

Lodgements not yet credited by the bank amount to £220.

How would the balance in the cash book be shown in the balance sheet?

Select ONE answer:

  1. 1.current asset £170
  2. 2.current asset £330
  3. 3.current liability £170
  4. 4.current liability £330

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 – (£250) – £140 + £220
  4. Not correct

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Accounting Multiple Choice Question – 8 June 2023

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

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In the books of a sole trader, discounts received of £1,400 have been posted correctly in the suppliers’ accounts but debited in the discounts allowed account.

What are the correcting entries?

Select ONE answer:

  1. Dr suspense £2,800  and  Cr discounts allowed £1,400 + discounts received £1,400
  2. Dr discounts allowed £1,400 + discounts received £1,400  and  Cr suspense £2,800
  3. Dr discounts allowed £1,400  and  discounts received £1,400
  4. Dr discounts received £1,400  and  discounts allowed £1,400

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. 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.