Accounting Multiple Choice Question – 13 July 2022

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

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A manufacturer has paid £3,000 for electricity from his private bank account.

The electricity charges are apportioned as follows:

  • factory – 50%
  • sales office – 10%
  • private – 40%

Which entries for electricity are necessary in the business accounts?

Select ONE answer:

  1. factory credit £1,000 / sales office credit £200 / capital account debit £1,200
  2. factory credit £1,500 / sales office credit £300 / capital account debit £1,800
  3. factory debit £1,000 / sales office debit £200 / capital account credit £1,200
  4. factory debit £1,500 / sales office debit £300 / capital account credit £1,800

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 – £3,000 * 0.5 = £1,800; £3,000 * 0.1 = £300 ==> Dr Electricity £1,800 Cr Capital £1,800

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Accounting Multiple Choice Question – 12 July 2022

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

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The following items of expenditure take place during the first month of a transport business.

  • rent – £1 000
  • insurance of building – £1 300
  • insurance of vehicle – £350
  • road tax – £500
  • purchase of vehicle – £15 000
  • number plate for vehicle – £150
  • painting of vehicle in company colours – £750
  • wages for lorry driver – £100
  • wages for painting vehicle – £150

What is the total capital expenditure?

Select ONE answer:

  1. £15 000
  2. £15 500
  3. £16 050
  4. £16 550

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 – £15,000 + £150 + £750 + £150
  4. Not correct

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Accounting Multiple Choice Question – 11 July 2022

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

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A loan due for repayment in 30 months’ time has been included as a current liability.

What will be the effect when this is corrected?

Select ONE answer:

  1. increase net assets
  2. increase net current assets
  3. no effect on net current assets
  4. reduce net current assets

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 – 10 July 2022

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

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Which item should be treated as capital expenditure?

Select ONE answer:

  1. cost of carriage on the purchase of a fixed asset
  2. cost of replacement of part of a fixed asset
  3. depreciation of a fixed asset
  4. repairs to a fixed asset

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 – 9 July 2022

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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The accounting year end for a company is 31 October.

The company’s telephone bill received on 5 December for the three months ended 30 November was:

  • telephone calls to 30 November – £1,041
  • rental of equipment for the period from 1 September to 30 November – £156
  • total telephone bill – £1,197

What accrual should the company make in the accounts for the year ended 31 October?

Select ONE answer:

  1. £503
  2. £798
  3. £1,093
  4. £1,197

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 ==> £1,197 / 3 then multiplied by 2 for September & October
  3. Not correct
  4. Not correct

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