Accounting Multiple Choice Question – 7 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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Which accounting treatments illustrate the use of the matching principle?

  1. valuation of stock at net realisable value rather than cost
  2. using the First In First Out method of valuation each year
  3. charging depreciation on fixed assets

Select ONE answer:

  1. 1, 2 and 3
  2. 1 and 3 only
  3. 2 only
  4. 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 4

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

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Accounting Multiple Choice Question – 6 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 buys a stapler for his business at a cost of £10 and the retailer estimates that it has a useful life of 5 years.

The bookkeeper has decided to treat the purchase of the calculator as revenue expenditure instead of capital expenditure.

Which accounting principle / concept has been applied?

Select ONE answer:

  1. accruals
  2. materiality
  3. prudence
  4. Money Measurement

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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Accounting Multiple Choice Question – 5 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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What is the purpose of providing for depreciation?

Select ONE answer:

  1. To apply the accruals or matching principle.
  2. To ascertain the true value of non-current assets.
  3. To ensure that money is available for repair of non-current assets.
  4. To provide cash in the business for replacement.

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.

Accounting Multiple Choice Question – 4 June 2023

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

apple devices books business coffee
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Non-current assets of a company were:

start of year:

  • at cost – £460,000
  • cumulative depreciation – £215,000
  • net book value – £245,000

end of year:

  • at cost – £505,000
  • cumulative depreciation- £237,000
  • net book value – £268,000

During the year Non-current assets costing £92,000 were purchased and Non-current assets with a net book value of £16,000 were sold.

What was the depreciation charge for the year?

Select ONE answer:

  1. £22,000
  2. £23,000
  3. £53,000
  4. £69,000

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 – £245k + £92k – £16k – £268k = = > £53k
  4. Not correct

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Accounting Multiple Choice Question – 3 June 2023

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A business prepares its accounts to 31 December. Insurance premiums paid were:

  • date paid January 2021 – paid for 6 months to 31 December 2005 £940
  • date paid July 2021 – paid for 6 months to 30 June 2006 £1,120
  • date paid January 2022 – paid for 6 months to 31 December 2006 £1,245
  • date paid March 2022 – paid for 6 months to 30 June 2007 – £1,880

Which amount should be shown in the profit and loss account for the year ended 31 December 2021?

Select ONE answer:

  1. £1,120
  2. £2,060
  3. £2,365
  4. £3,305

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 – £1,120 + £1,245
  4. Not correct

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